The Hindu Business Line : Prateek Apparels plans discount stores

A new brand of discount stores for apparel brands across the country is being planned by the Rs 125-crore company. A new company called Prateek Lifestyles has been floated to mark its foray into the retail segment.

Mr Pradeep Agarwal, Managing Director, told Business Line: "We expect to have 10-12 stores in the value or discount segment. These would stock apparel brands."

Its first discount store is expected to be launched in Bangalore near the company's existing manufacturing base.

Marking an investment between Rs 15-20 crore per store, the size of each would vary between 30,000 sq ft and 60,000 sq feet.

"We are now negotiating for property in places such as Mumbai and Delhi for our value stores and are looking at different formats within the discount store model," said Mr Agarwal. The retail foray would be funded by internal accruals.

To raise funds

The company is also looking at raising funds from banks and financial institutions, followed by an IPO.

Meanwhile, the company is bringing in international brands in the kids and lingerie segments and launching stores under respective brands.

For instance, it has already tied up with the German kids brand, Kanz. "Kidswear is one of the fastest growing areas in India and Kanz is one of the largest kidswear brands in Germany. We will make this brand available in the mid- to high-priced segment."

With plans of setting up standalone and multi-brand outlets for the Kanz brand, Prateek Apparels is mulling either a joint venture or a licensee arrangement with the German brand.

The company is also planning to set up a fabric manufacturing unit to further integrate its operations in the textile business. Besides, it is on the lookout to acquire textile mills in Europe for manufacturing knitwear. "We are looking at organic and inorganic growth for manufacturing knitwear with intentions of having complete integration in our operations."

Prateek Apparels has been supplying garments to brands such as Benetton, Levis, Madura Garments and Arvind and retailers such as Trent (Westside) in the domestic market. The company expects to achieve a turnover of Rs 250 crore this fiscal.

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