Pune-based clothing manufacturer,Cottonking, is expanding its presence across five states — Gujarat, Andhra Pradesh, Maharashtra, Chhattisgarh and Karnataka — and plans to open 70 stores by this year end. The company now has 54 stores across Maharashtra, Gujarat and Andhra Pradesh.
“Our strategy is to create a strong presence in the existing markets before entering new geographies. We are exploring Odisha and Rajasthan markets to enter by the next financial year,” said Koushik Marathe, chief executive officer of Cottonking.
To support its expansion plan, the company has lined up Rs 3-4 crore investments over the next one year, he said. As of now, Cottonking has invested Rs 15-20 crore in setting up its manufacturing unit, designer team and also in its operations.
Its has a manufacturing unit at Baramati near Pune spread across 84,000 sft with a capacity of 2,000-2,500 pieces of garments per day.
Launching two ‘Cottonking’ franchise stores here, Marathe said, “Hyderabad is a potential market for us. We entered in the city six months ago with four stores, and are looking for opportunities to open more stores in the state.”
The men's ready-made garment segment is growing even in Tier II and Tier III cities, and on average the market for ready-made garments is growing at 50 per cent year-on-year, he added.
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Cottonking has two brands — Regalia (mid segment) and Royale (premium segment) — in its portfolio, which are priced between Rs 595 and Rs 995.
It may enter women and kid segments. “Once, we will have a strong presence pan-India, hopefully five years down the line, we will strategise to enter these segments,” he said. The company recorded a turnover of Rs 36 crore last year and expects Rs 55 crore this year.