Rupa banks on women’s category for growth, eyes 10 percent growth in FY 2019-20

By

Maverick Martins

Published
Mar 8, 2019

Rupa and Company Ltd is banking on its women’s category to drive sales going forward and expects this category to contribute 20 percent to its overall revenue next fiscal.
 

The company, which reported revenue of Rs 1,126 crore for the fiscal year 2017-18, is expecting 7 percent growth this fiscal as a result of poor demand coupled with the impact of GST on its business.
 
Rupa had a poor third quarter witnessing a 5 percent drop in its net profit to Rs 23 crore ($3.3 million) and sales revenue of Rs 283 crore which is likely to affect the overall performance of the company for the year.

Rupa, however, remains optimistic about the future as it looks to diversify its product portfolio especially in the women’s category which includes entry into the lucrative women’s lingerie segment this year. It expects 10 percent growth in turnover in 2019-20.
 
“There is a big scope in leggings and we are focussing on it. We have also roped in Anushka Sharma as the brand ambassador. The growth in this segment has been good. Women’s category currently accounts for 15 percent of our total turnover and has been growing at over 20 percent,” KB Agarwala, managing director of Rupa and Company Ltd, told BusinessLine.
 
“This year we are expecting a flat growth as the market is dull due to poor demand and high competition. But we expect next year to be good with GST easing out. This might translate into better sales,” he said.
 
Rupa & Co Limited is one of the largest knitwear brands in India that produces innerwear, casual wear, thermal wear, and sleepwear for men, women, and kids.