At a time when apparel manufacturers are struggling due to weak demand, Ashapura Intimates Fashion (AIFL) plans to set up 100 retail stores in the next two years.
The BSE-listed company has already set up two retail stores in Mumbai in January this year. The company proposes to set up 23 more stores in and around Mumbai.
“Our two-year business plans entails an investment of Rs 25 crore for setting up 100 stores across all major cities. Of which, we will open 25 owned retail outlets in and around Mumbai. The remaining, however, will be set up in cities like Ahmedabad, Delhi and other mega cities. Elsewhere, we want to open stores through the franchise model,” said Harshad Thakkar, Chairman and managing Director of AIFL.
These retail stores will sell AIFL's “Valentine” and “N-Line” branded apparels besides loungewear for men and women, sports wear etc. Priced over Rs 1,099, Valentine is a premium brand while N-Line is sold between Rs 699 and Rs 1,099.
The company proposes to meet investment through internal accruals.
“In textile industry, the entire cycle works for nine months between fabric order to collection of sales proceeds. We want to use this investment credit period of nine months for our organic growth, which will fetch higher margins,” said Thakkar.
Sales in MENA region contributed around 5% to the company's turnover in FY14. The company is eyeing 30% turnover from export markets in the future.