Cantabil plans retail expansion, eyes revenue of Rs 390 crore this fiscal

By

Maverick Martins

Published
Sep 4, 2019

Fashion apparel brand Cantabil is looking to strengthen its retail presence across the country especially in tier 3, 4 cities as it looks to move away from the discounting model for growth in the Indian market.
 

The apparel retailer, known for its deep discounting model, is banking on retail expansion for future growth and will be investing Rs 15 crore ($2.1 million) to open 75 stores across India. The stores will be a mix of company-owned and franchise outlets.
 
Cantabil is expecting its revenue to jump 30 percent to Rs 390 crore during the current fiscal on the back of its retail expansion. It had reported sales of Rs 290 crore in the financial year 2018-19.

“Cantabil plans to open another 75 stores this year primarily in the tier 3 markets. At present, we have around 80 percent of the company-owned outlets and 20 percent is owned by franchisee partners. But the next phase of expansion can see the percentage of franchisee stores going up to 30 percent," Deepak Bansal, director of Cantabil Retail told the Economic Times.
 
“Major expansion will be carried out in Haryana and Punjab, Uttar Pradesh, Rajasthan, and Madhya Pradesh. There is no competition in the smaller towns, the rentals are less and the business is very good as compared to the rentals. Profitability is also very high,” Bansal added.
 
Cantabil Retail India Ltd is a New Delhi based apparel manufacturer and retail discount outlet. It currently has 265 stores in 16 states across India.