Shri Lakshmi Cotsyn (SLCL), an integrated textile player engaged in manufacturing and processing end-to-end textile products, is launching exclusive retail outlets in tier II cities under its brand name Weaves. The company will roll out 100 franchise-owned stores in 50 cities in the next two years, starting with the first store in Chandigarh. An investment of Rs 10 crore has been made for this expansion, where each store will see an investment of Rs 5-10 lakh. Each store will occupy about 400 square feet space and stock 12-15 categories of home furnishing products like teri-towels, bedsheets, table-mats, footmats and shower curtains.
Sanjay Gupta, president ? retail, Shri Lakshmi Cotsyn, said, ?It is more viable to run stores in tier II and III cities, as the cost of operation is much lower compared to that in tier I cities. In addition to that, metros and tier I cities are saturated. We’ve tied up with 40 distributors across India for this venture. In the first phase, stores will come up in Chandigarh, Ludhiana, Jalandhar, Pathankot, Jaipur and Jammu, which will cater to the demand for high-end value-added products in the home furnishing market.?
Shri Lakshmi Cotsyn, which clocked revenues of Rs 418.63 crore for the quarter ended September 2010, already has a presence through 1,200 multi-brand outlets. ?The textile industry is worth Rs 20,000 crore, of which the organised retail amounts to Rs 500 crore. Shri Lakshmi Cotsyn has a negligible presence. With this expansion, we expect to record sales of more than Rs 30 crore and occupy nearly 10% of the organised textile market by FY13,? added Gupta.
