Capitalising on falling raw material prices and real estate rentals, domestic apparel brand Biba is hopeful to open at least 20 stores, mostly on high streets, in the next one year. Biba is planning to open at least 100 new stores in the next three years.
With a present turnover close to Rs 130 crore, the company is eying a sales of Rs 500 crore by 2011.
"In the last four months, several factors have worked in our favour. We have been able to reduce the cost of raw materials, logistics and rentals. At present, we do not have stores in high streets, as rentals were very high till about six months' back. Now, with rentals falling, we plan to open stores not only in malls, but also in locations like Banjara Hills in Hyderabad and Greater Kailash in Delhi," said Siddharath Bindra, managing director, Biba.
Retail rentals have reduced by almost half in most plush locations of metros like Delhi and Mumbai, according to Bindra.
While the company is hopeful of a turnover of Rs 130 crore this fiscal, and Rs 200 crore next fiscal, it expects slight decline is its EBITDA margin, which was 15 per cent last fiscal.
"We are a very product oriented company, and have been able to maintain an efficient supply chain. We mostly source raw materials from textiles centres like Surat, Ahmadabad and Jaipur," said Bindra.