Monte Carlo trims expansion plan, to open 30 outlets by FY17

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New Delhi | January 24, 2016 11:47 AM

The company operates 226 outlets across the country and sells its products through 1,500 multi-brand outlets such as Shoppers Stop. It will open five stores in the ongoing fiscal and 25 outlets in next financial year.

monte LMonte Carlo also has stores in Dubai, Nepal and Bangladesh.

Monte Carlo Fashions is scaling back opening of its exclusive brand outlets (EBOs) to 30 by FY17 as against the earlier plan of 50 due to economic slowdown.

The company operates 226 outlets across the country and sells its products through 1,500 multi-brand outlets such as Shoppers Stop. It will open five stores in the ongoing fiscal and 25 outlets in next financial year.

“At the time of IPO in December 2014, we had indicated that we will have 275 EBOs by FY’17. However, due to economic slowdown, we will expand at a slower pace than we had earlier planned. We plan to open 30 EBOs by fiscal 2017,” Monte Carlo Fashions Executive Director Sandeep Jain told PTI.

Amid the slowdown, he said the focus of expansion will be to increase presence in regions where it is not strong.

“Over 90 per cent of our exclusive stores are concentrated in northern, central and eastern regions of the country. Now, we are looking at expanding our footprint in southern and western regions,” Jain added.

Monte Carlo also has stores in Dubai, Nepal and Bangladesh.

“We are looking at expanding our presence in these three overseas markets and also enter more geographies. We may look at opening stores in Bhutan and Pakistan. We are looking at tapping countries with higher Indian diaspora,” Jain said.

On the growth outlook, Jain said despite negative market sentiments, the company maintains a guidance of 10-15 per cent for the current full fiscal year.

Known mostly as winter-wear brand, Monte Carlo is also working hard to change its image to ‘all-seasons apparel’ brand.

“Currently 65 per cent of our total sales come from non-winter products and only 35 per cent from winter products. We have expanded our products range and entered new segments like under-penetrated kids segments. We want to be known as an all-seasons brand,” said.

Jain said the company is also exploring possibility of entering into a licensing agreement to bring in foreign brands in the India, like its homegrown competitor Arvind Ltd.

Arvind Ltd has a franchise agreement with over a dozen international brands, including Gap, Calvin Klein and Aeropostale.

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