Koutons to float IPO of Rs 150 cr by year-end

Koutons India Retail Ltd (KRIL) has decided to float a public issue of Rs 150 crore by the end of this year.

The company plans to open 2,000 new outlets in the next two years and 200 outlets would be opened in the north-west by the end of 2006-07.

One hundred outlets would be launched on September 27 to re-launch the brand 'Charlie' as 'Charlie outlaw.'

'Charlie Outlaw', a new range of men's outfits would target the new generation consumers. This would help the company to explore the economy segment, whereas its existing brand Koutons would as usual cater to the high-end market.

The company was also contemplating of introducing Koutons Junior and Koutons Shoes to make the Koutons Stores a complete shopping destination. "Plans for Greater Punjab are big," comments H S Sidhu, executive vice president of KRIL. At least 50 sale points of the upcoming brand would be launched in Punjab, Haryana, Himachal and Chandigarh.

Punjab is a front-runner in consumerism and with the middle class splurging in the tier two towns, the company has reached out to even Sangrur and Barnala.

"The emerging markets are the virgin markets and have a tremendous potential for the sellers," said Sidhu.

With a franchise network of 296 and an annual market of Rs 160 crore, Sidhu assumes to command the trendy apparel market and is satisfied with the domestic market.

"We do not aspire to foray the foreign markets because there is a huge untapped potential in our domestic market," said Sidhu.

With the new product range in the pipeline, the company expects to increase its network with 2,000 galleries and a manufacturing capacity of 10 million garments by the end of 2006-07.