The brand which spent Rs 3.3 crore on advertising in FY19, doesn’t plan to up its spend in FY21
Lakhani Infinity Footcare, which owns and markets footwear under the brand Lakhani aims to clock in revenue of Rs 165 crore in FY20 thereby posting a 57% growth. The company’s revenue from operations stood at Rs 104 crore in FY19, as it recorded a net profit of Rs 1.5 crore, according to regulatory filings sourced by business intelligence platform Tofler. According to the company, much of the revenue will be driven by the sale of its sportswear. “Being a multi-product company, we are heavily banking on marketing the sportswear category particularly to youth and women who are set to be the major drivers of the growth,” Mayank Lakhani, director, Lakhani Infinity Footcare Pvt Ltd, said.
The 55-year old footwear brand which spent Rs 3.3 crore on advertising and promotion in FY19, doesn’t plan to up its spend in the next fiscal. As per the firm, ad spends is dominated by print, followed by promotional marketing to retailers and distributors across the country. “We plan to spend on radio and television in the year ahead, followed by digital. On digital we plan to roll-out youth-centric campaigns to target these consumers,” Lakhani stated.
Lakhani Infinity Footcare Pvt Ltd, plans to invest in what it calls, ‘super distributor model (depots)’ in tier 2 cities. According to Lakhani, the model which is currently in function in Jaipur will be soon extended to North Haryana, West Bengal followed by other cities. With about 1.5% market share in the organised footwear category, the brand currently sells and markets products between the price range of Rs 499 to Rs 1,499. “Nearly 95% of our revenue comes from tier 2 and tier 3 cities. We will continue our focus towards these markets and catering to the needs of the price-sensitive consumers,” Lakhani explained.
Brick-and-mortar retail outlets still account for the majority of its sales, while online accounts for two percent. “As long as we are growing above 10% in terms of revenue, we will continue to invest more in the offline space. We will explore the online platforms after we have achieved a turnover target of Rs 400 crore in the next four to six years,” he noted. The company claims that it plans to clock in revenue of Rs 225 crore in FY21 with sportswear accounting for 50% of the overall sales.