Sakk collection plans retail expansion across the country

SAKK Collection Ltd, a subsidiary of the Delhi-based Om Overseas Group, plans to launch a nationwide retail network of around 1,000 stores in the next five years. The stores will have a complete range of home furnishings under the brand name 'Sakk Collection'.

The company has earmarked Rs 600 crore to fund its retail foray. Further, as part of the diversification plan, the company will foray into men's wear in a joint venture with a European company.

The company has state-of-the-art manufacturing facilities at five locations in Panipat, three in Delhi and one in Ahmedabad. It is currently engaged in home textiles, accessories and textile packaging for international retailers and brands.

In an interaction with Business Standard, President Anil Khurana said: "These 1,000 exclusive stores will be opened by 2011-12. The company has identified sites in 90 cities of the country for the purpose. Initially, the company will open 20 stores in September and by December plans to increase the number to 100. By the end of the current financial year, the company targets opening 150 such stores in smaller cities of Punjab, Haryana, west and east Uttar Pradesh, Rajasthan, Bihar, Jharkhand and West Begal."

In Punjab, there would be 20 stores whereas in Haryana, the company has planned 14 stores.

Commenting upon the investment and store format, he said, "We will invest close to Rs 600 crore for opening 1,000 stores. The stores will not be based on franchisee model. Rather, we will partner and invest. The upcoming store would be based on the profit-sharing model."

The company plans to mobilise funds required for the expansion and diversification through internal accruals, merger of group companies and banks. The company may also opt tapping the capital market after the approval from the competent authority.

He said, "We plan to tap the capital market by the end of 2008 and by that time we would have 300 stores across several cities."

About future ventures, he said, "We had tied up with Europe's leading brand to foray into Men's wear and it is expected to be launched by May 2008."

The company's diverse product range includes curtains, drapes, cushions, rugs, carpet, towels, bath mats, garment accessories, textile packaging and other kitchen and bathroom textiles.

It also manufactures 20 million metres and processes 30 million metres of fabric per month.The company has also set aside Rs 73 crore for capacity expansion at Panipat and Gujarat facility.

In the last financial year, the turnover of the company was Rs 212 crore and is expected to touch Rs 440 crore this year. After expansion, the company hopes a turnover of over Rs 1,000 crore.