Vividha Home Fashions Limited (VHFL), a Mumbai-based exporter of soft furnishings and fabric made-ups that recently launched its retail business in the country under the brand name ‘Vividha’, is planning to expand its retail network across major south Indian cities.
The company, which currently has one store in Bangalore and is present through multi-brand outlets in Tamil Nadu, is planning to open at least one store each in Kochi and Hyderabad, and a second outlet in Bangalore and Tamil Nadu this year.
VHFL, which sells children’s furnishings, theme-based décor, baby bean bags and furniture, plans to open 30-35 stores across the country during the next three years. Typically, each store will see an investment of Rs 1 crore, Siddharth Upadhyaya, chief operating officer, VHFL, said. The company sources nearly 80 per cent of its fabric from south India.
The company is also in talks with a few private equity firms to raise Rs 50 crore to fund its expansion. “We now have five stores in the country. Two of them are in Mumbai and one each in Delhi and Bangalore. We are in an expansion mode now and are looking at major cities in the country. We are also in talks with a few PE firms to raise at least Rs 15 crore initially which could go up to Rs 50 crore. We wish to complete the deal by October this year,” he said.
During the current year, it also aims to open stores in Ahmedabad and Kolkata. In the second phase, it will rope in franchisees to expand the network in north eastern parts of the country, he said.
VHFL has also registered its brand name – Vividha – for launching nightwear for children and maternity wear, which will be launched by November this year.
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The company, which has been exporting soft furnishings for kids to Europe, Australia and New Zealand since 2003. During 2008-09 it is looking at a 30 per cent growth in its export revenue which is expected to touch Rs 10 crore. It also expects to clock a revenue of Rs 20 crore from the retail operations in the first year.
Upadhyaya said the company is in talks with multi-brand outlets like Shopper’s Stop and Lifestyle for opening shop-in-shops.