The Hindu Business Line : S Kumars foraying into West Asia

Mumbai, Oct. 10 S Kumars is to launch its first overseas retail stores in West Asia within the next six months, Mr Nitin S. Kasliwal, Vice-Chairman and Managing Director, told Business Line. They will be exclusive brand outlets for the company’s brands Reid & Taylor, Belmonte and Carmichael.

“West Asia, because the market there is similar to India and Reid & Taylor as a brand is already doing well there. Besides, the cost of setting up a single outlet is Rs 1 crore, just a little more than the 50-60 lakh required for a store in India,” he said.

Tie-up with UK brand

The company recently tied-up with the premium UK brand, Stephen Brothers, for licensing, marketing and manufacturing.

The brand will be manufactured at the existing facility for Reid & Taylor at Mysore and will be available in stores by the end of this month.

“We are also in talks with eight to nine international brands, which we intend to add to our portfolio. We plan to bring around 10 brands to India within the next three years,” he added.

Add stores

S Kumars operates 150 stores in the country and intends to set up 1,026 stores within the next three years, of which 650 will be co-operated and the rest will be franchised, he said.

The retail arm of the company, Brand House Retail, is projected to do sales of Rs 330 crore by the end of the current fiscal, against Rs 65 crore in the last fiscal.

“Our sales grew by a healthy 40 per cent mainly due to the performance of our brands,” said Mr Jagadish Shetty, President (Finance).

Exports contribute to only two-and-a-half to three per cent of our business and hence the appreciating rupee did not affect the performance of the group.

“It has in fact helped us, since we import a lot of our fabric from China, fibre and wool from Australia,” said Mr Shetty.

The company’s net profit for the quarter ended September 30 increased 57.6 per cent to Rs 43.21 crore against Rs 27.42 crore in the corresponding quarter last year, while sales increased to Rs 391 crore as compared to Rs 278.25 crore during the corresponding quarter last year.

More Stories on : Retailing | Overseas Investments | Textiles

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page