Blow Plast plans Rs 15 cr capex for retail expansion

The marketing arm of luggage manufacturer VIP Industries limited, Blow Plast plans to expand the number of the VIP showrooms in Maharashtra and other major markets in the country.

The company will add 42 new VIP outlets in the current quarter and take the number to 126 outlets around the country by March 2007, at a capital expenditure of Rs 15 crore. They include 85 stand-alone brand stores as well as 41 franchisee outlets, said Videh Jaipuriar the vice-president for sales at Blow Plast.

In Maharashtra, Blow Plast will almost double its presence by increasing the number showrooms from 8 at present, to fifteen by March 2006. This number would further increase to twenty-four during the year 2006-07, informed Jaipuriar. In terms of space, the retail area in Maharashtra will increase from 5,900 sq ft to 13,800 sq ft, he said.

The company's products have been gaining significant demand across categories responding to which, the expansion of the number of showrooms for enhanced visibility has been taken up, said Jaipuriar. At the national level, retail space with the company will reach from the present 43,950 sq ft, to 1,22,000 sq ft by 2007, he added.

"Currently our emphasis is on high street stores, which will eventually shift to a mix of malls and high streets, so as to provide the customers a thorough retail ambience," said Parag Dani, Blow Plast's head of retail.

Maharashtra has been a strong market for the company, contributing in a big way to the company's annual revenues and Pune is a major centre, from where 6.5 per cent of the national revenue is earned by it. He said the company has a presence in all luggage categories and is in the process of expanding them now.

"We propose to bring in at least 5 varieties in each category, thereby offering the customer greater flexibility and selection," he said. In addition to the stand-alone brand stores and franchisee outlets, VIP products are sold through nearly 8,000 retail outlets across the country, Dani informed.