Pradip Overseas plans foray into retail

To invest over Rs 50 cr; first outlet to come up in Mumbai.

Shifting its focus from exports to the domestic market, Ahmedabad-based Pradip Overseas Limited is planning to set up retail outlets for its soon-to-be-launched home linen brand.

Till now, the manufacturer of household linen had a negligible presence in the domestic market, with exports forming over 75 per cent of its total production. The company is investing over Rs 50 crore in its retail venture and the first outlet will come up in Mumbai.

"In the first year of operations ending March 2009, we hope to set up at least 20 outlets across the country. Apart from this, we will get into institutional sales of our household linen brands to government agencies, hotels and other retail formats," said JS Negi, director and technical advisor, Pradip Overseas Limited, adding that the retail foray is expected to double the company's annual turnover of Rs 100 crore.

After opening up of offices in the US and Dubai, to be followed by Singapore, China and Hong Kong, Pradip Overseas is also expecting its exports to touch Rs 500 crore.

The company is also mulling over some joint ventures and acquisitions of US-based textile companies for manufacturing or marketing of its brands overseas, according to Negi.

Refusing to divulge the names of the companies, Negi said the company might shell out anywhere between Rs 200 crore and Rs 300 crore for the acquisitions.

Meanwhile, Pradip Overseas' textile special economic zone (SEZ) near Bagodara on the Ahmedabad-Rajkot highway is taking shape.

To be set up at a cost of Rs 1,200 crore across an area of 115 hectares, the SEZ will help the company expand its current processing plant capacity of 2 lakh metres per day, apart from setting up its own spinning, weaving and processing units with a total capacity of 5 lakh metres per day.