Max Fashion to expand base in tier II cities, add 60 stores next year

By

Maverick Martins

Published
Nov 17, 2017

Landmark Group’s apparel brand Max Fashions has decided to shift its focus to India’s tier II, tier III markets for growth and plans to add 60 crores in these cities next year, said a top company official.
 

The tier II cities have been instrumental in giving a fillip to Max Fashion business in India contributing around 15 percent to the company’s profits. As the result of that the company has decided to reinvest some of the profits to further penetrate into these markets.
 
Max Fashion will invest Rs 3 crore (approx $0.5 million) on each unit that will take the total budget on the expansion in these cities to Rs 180 crore (approx $28 million).

“We will add 60 stores in non-metros. This expansion, with each unit worth close to Rs 3 crore, will add 30 to 40 cities to our network,” Raghu Rajagopalan, Chief Operating Officer, Max Retail Division told the BusinessLine at the launch of the company’s 200th outlet in India,
 
 “Around 15 per cent of our profit of western outfits comes from cities like Tiruchi, Madurai and Thanjavur, and we are also looking at smaller towns like Nagercoil and Tirunelveli, he added.
 
Max Fashion will be adding around 20 new stores this fiscal with an investment of Rs 120 crore (approx $18.5 million and eyeing a turnover of Rs 3000 crore ($461.5 million) in this financial year. The company’s sales revenue in the last financial year stood at Rs 2,400 crore (approx $369.1 million).
 
The company will also have a new CEO in Shital Mehta from January 2018 who joins the company from the Aditya Birla Group and will lead the expansion drive of the company.
 
The Dubai-based $9 billion Landmark Group owns brands like Lifestyle, Max Fashion, Home Centre, Spar Hypermarkets and EasyBuy.