Arvind Fashions to add 200 stores every year, eyes Rs 7,500 crore revenue by 2022
Arvind Lifestyle Brands, the apparel business of Arvind Ltd, is looking to expand its retail presence by adding 200 stores every year with the aim of generating revenue of Rs 7,500 crore (approx $1.07 billion) by 2022.
The company has earmarked an investment of Rs 150 crore per year on its retail expansion and will strategically open stores in tier 3 cities. It is also looking to strengthen its online presence to boost sales from across the country.
The fashion unit of Arvind had reported revenue of Rs 4,800 crore during the last fiscal with offline contributing 87 percent and a meagre 13 percent coming from online sales.
“We are targeting Rs 7,500 crore by 2022. Our focus will be more on driving the profitability and return on the capital employed. In the last 4-5 years, we have been delivering close to 20 percent that is by far the fastest growth rate for us,” J Suresh, managing director, and chief executive officer, Arvind Lifestyle Brands told Moneycontrol.
“We plan to open about 150-200 stores every year. Going forward, we would be largely in Tier 3 and largely franchise route. We are pretty much filled up in Tier 1 and Tier 2,” he added.
Arvind Limited is a leading player in India’s textile and apparel market. It owns the India licenses for brands like Tommy Hilfiger, Calvin Klein, Arrow, Gant, Nautica, Gap, and Aeropostale.
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