The Hindu Business Line : M&B Footwear on expansion mode

New Delhi, March 22 M&B Footwear India, which has a brand licensee agreement with several international brands, is on an expansion trail. The company is looking at private-equity placement of around $10 million and mulling to offload 15 per cent of its stake.

“We are on an aggressive growth mode in the domestic market. Talks are on with prospective strategic partners for raising the capital,” Mr Inder Dev Musafir, Co-promoter and Director M&B Footwear told Business Line.

Growth path

The company, which also promotes its own range of footwear under the iD range, said the footwear market is charting a growth path with both the casual and formal segment showing immense growth. “We are putting together a line of footwear which will compliment our brand portfolio,” he said.

The backward-integrated company is looking to become a major player in the footwear market. Besides its own research and development centre, the company also has two manufacturing units in Baddi and Noida.

Increase production

“Currently, our manufacturing facilities have a capacity to produce 5,000 pairs a day. We are planning to take the production to 8,000 pairs a day by the end of the year,” he said.

Elaborating on its retail strategy, Mr Musafir said, “Retail is the sector from which the major growth is coming.” The company has set up its own retail outlets ‘Walk In’ besides has tie ups with leading new format stores like Lifestyle. This apart, it also has discount stores or factory outlets.

“We currently have around 35 Walk In stores, 15 shop-in-shop and 40 factory outlets. We hope to take the total number of stores to 200 by 2009-10 and have envisaged an investment of Rs 50 lakh per outlet,” Mr Musafir added.

Distribution strategy

He said the no-frill stores or discount outlets contribute as much 20 per cent to the turnover. As part of the distribution strategy, the number of retailers will go up from 430 to 550.

Mr Musafir added that the company will add accessories and apparels to its existing product line before the end of this year.

The company has earmarked the budget for brand promotion at Rs 20 crore in the coming year.

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