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Footwear and apparel firm Woodland will invest up to Rs 500 crore in the next five years on expanding its retail network as part of its plans to double the store count to 1,000 by 2020 and enhance capacity.
The company has also set a target of Rs 2,500 crore revenue by 2020 from Rs 1,300 crore expected in 2014-15.
With Budget around the corner, the company said it was in favour of implementation of GST and removal of excise duty, as for apparels there is no duty, while it has to pay for shoes.
“We are targeting to have 1,000 stores by 2020. The company is adding between 50 to 60 new stores every year. We are planning to double our growth in the coming year. We would have an investment of Rs 400 to Rs 500 crore in next five years,” Woodland Managing Director Harkirat Singh told PTI.
It would be spent on network expansion and capacity enhancement, he added.
“We are consistently growing between 20-25 per cent every year and in FY 2014-15 we would have a turnover of Rs 1,300 crore, out of which 55 per cent would come from shoes segment, 35 per cent from apparels and remaining 10 per cent from our accessories and equipment segment,” Singh added.
The company had a revenue of nearly Rs 1,000 crore in 2013-14. It has a network of around 500 stores spread in 250 cities. It is now focusing to expand in East and North-East regions.
“Now there is potential even in small towns. Lifestyle of the people is improving and we see a lot of growth in this category. Today, we see lot of youth indulging in outdoor activities and we see lots of future in this area. There are many players in sports segments but still in outdoor, we are leader in the market,” Singh said.
E-commerce platform
Apart from traditional retail channels, the company is also expecting revenue share from e-commerce platform to grow.
“At present, we are getting around 10 per cent revenue from e-commerce sector, which is growing. In the another two years, we are expecting it to be 12 to 15 per cent,” he said.
On the international business, he said Woodland has eight stores in Hong Kong and is having good growth in the Middle-East and CIS regions with 20 per cent revenue comes from exports.
“There is a company Woodland Asia Pacific in Hong Kong and it takes care of all the regions as China, South East Asia. We are also present in Middle East and CIS country through Moscow office. We also sell to Europe and U.S. but that market is saturated and these new markets are growing much faster,” he added.
On international expansion, he said: “We are pushing it a lot and now we are going to Africa and Latin America. It would take some time to establish a brand and open a store.” 02151046
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