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Ratna Bhushan

NEW DELHI, Jan. 8

THE Rs 68-crore apparel, lifestyle and home accessories retail chain Ebony Retail Holdings Ltd, has allocated an investment of Rs 40 crore to facilitate its expansion plans over the next four years, Mr B. S. Narula, Managing Director, Ebony, told Business Line.

"The funds will be raised entirely through internal accruals. We are not looking at the option of tapping the capital market," Mr Narula said. Ebony Retail Holdings is owned by the $400 million DS Group, which has interests in construction, retail, hospitality and infrastructure. Apart from India, the group has businesses in the US, the UK, Dubai and North Africa.

Current overall investments in Indian retail operations stand at Rs 40 crore, Mr Narula said. Ebony Retail Holdings expects to close fiscal 2002-03 on a turnover of Rs 85-90 crore.

Mr Narula added that the retail chain was open to synergistic, strategic acquisitions. "We could, for example, acquire apparel brands provided the pricing is right. We have been approached by two or three well-known menswear brands and are currently in talks with them," Mr Narula said, declining to mention their names.

Within a period of four years, Ebony intends to increase the number of its stores to 20, from the existing nine. According to Mr Narula, the chain will also consider tapping high-footfall areas within SEC-B cities. Also, the focus henceforth will be on setting up stores within malls, rather than at standalone locations. The company will steer clear of the franchise route for the immediate future, Mr Narula added.

Apart from one store in Chennai, Ebony's presence has been restricted largely to the Northern region. According to Mr Narula, the company will focus on setting up stores in the Southern region over the next two-three years. The chain has a tie-up with coffee chain Barista in six Ebony outlets, and with Qwiky's at its outlet in Chennai.

Mr Narula added that Ebony ETC, the retail chain's in-house apparel and home accessories brand, now accounts for 21 per cent of its volumes.

Meanwhile, the retail chain's decision to set up budget stores across the country has been put on hold for the time being. "The concept did not take off. Research shows that consumers look for attractive price deals, a wide variety of products, and ambience under one roof. Offering all this together is not possible at budget stores," Mr Narula said.

Ebony Retail Holdings began operations in late 1994, in New Delhi.

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