Cotton County to double stores to 500

Cotton County, the Rs 100 crore ready-to-wear garment brand, is looking at scaling up retail activities and expand its manufacturing capacities this financial year.

The brand is owned by of the Ludhiana-based integrated textile player Nahar Industrial Enterprises (NIEL), part of the Rs 2,400-crore Nahar Group that has diversified interests in textiles and sugar.

Cotton County, at present, has three ready-to-wear garments brands "� Tazo, a kidswear brand, Femme, a women's wear, and French Republic, a men's brand "� and expects to continue cashing in on its 'mass brand' image.

"We want to make our presence felt in the growing retail space. We therefore plan a total of 500 outlets by this financial year, from 250 right now," said Sachin Sahni, associate vice-president of Cotton County.

In east India itself the company plans a total of 100 stores by March 2008, from 27 right now. These stores would be run on franchisee model and would require an estimated investment of Rs 20 lakhs per store.

"East India is witnessing a major retail boom, reason why would focus a lot of our expansion around this region," Sahni explained.

According to Sahni, opening newer stores help increase volume sales as well as reduce advertising costs as more stores automatically ensure more visibility and therefore reduce overall ad spends.

According to industry estimates, apparel retailing forms the largest chunk of organised retail in the country with a share of close to 45 per cent.

NIEL's expansion plans would also include a significant addition to its existing capacity. "We would invest Rs 10 crore this financial year to double capacity of our Ludhiana plant from the present 10,000 garments per day," Sahni said.

Cotton County would also look at exporting to Middle East in the next 1 or 2 years.

"Exporting to Middle East has an advantage because the sizes and taste match with India," Sahni said.

Cotton County expects to double its turnover next financial year from Rs 100 crore right now. Although contribution from retail businesses to Nahar Group's overall turnover has been negligible, this is expected to increase over the next few years on the back of retail and economy boom.