Co-optex expects its turnover to have crossed the landmark figure of Rs 1,000 crore in the just-concluded financial year.
The organisation's interests are in retail, yarn sale and government schemes (school uniform and sari-dhoti distribution). Co-optex clocked an overall turnover of Rs 904 crore last year (including retail revenue of Rs 198 crore).
“In 2011-12, we hope to have crossed Rs 1,000 crore, with retail sales of Rs 216 crore,” says Mr Vijay Pingale, Managing Director, Co-optex, the apex body of the handloom sector in Tamil Nadu.
The organisation earned an estimated net profit of Rs 26 crore in 2010-11, up from Rs 22 crore in 2009-10. The 2011-12 financial year's numbers are awaited.
The apex body recently launched the ‘Buy 2 Get 1 Free' scheme which has brought large number of customers to Co-optex showrooms, said Mr Pingale.
In 2011-12, Co-optex bought products worth Rs 110 crore from weavers. This year, it is bullish due to increased demand. It is looking to buy products worth nearly three times that.
Co-optex, which has 203 showrooms across the country, is in the process of refurbishing its stores to attract the younger generation. Contemporary showrooms have come up recently in Bangalore, Mumbai and Erode. It is also moving under-performing stores to commercially viable locations.
It has also set up an ‘International' store in Chennai. The store retails home furnishing and bags and is targeted at the elite market which is looking for trendy quality products, beyond saris. It has been received well, says Mr Pingale. “We want to replicate this format in other metros as well. Next launch will be in Hyderabad.”
The organisation has tied up with a local IT provider for ERP software. It is also engaged in bar-coding its products.
Weaver wages
Co-optex is looking to increase wages for weavers engaged in production of home-furnishing products. “While this may push up retail prices of products a bit, it will ensure weavers are not exploited.”
Today, 30 per cent of the product cost goes to weavers as wages, paid by Co-optex. The apex body has identified 58 special items — including towels, carpets and bed sheets — wherein the wage component will be increased. The move is expected to touch the lives of 30,000 weavers, says Mr Pingale.