French luggage maker Delsey SA today said it will double its retail footprint in India as part of strategy to increase by ten-fold revenue contribution from its operations here in the next three to five years.
The company's Indian arm -- Delsey India, a joint venture between Delsey SA and Kolkata-based distribution company Beauty Concepts Pvt Ltd -- will double the number of stand-alone stores by end of the current financial year from the current 18 stand-alone stores.
"We are expecting Delsey India to contribute 10% to our global revenues in the next three to five years as against less than one% at present," Delsey Group CEO Geunther Trieb told PTI.
He, however, declined to share the exact financials of the company citing it was a privately held firm.
"We are a privately held company so we don't share numbers but we will grow significantly. India is an important market for us. Asia is our priority," Trieb said.
For the next three years, the company is looking to treble sales in India, he said, adding Delsey India grew by 600% in 2012-13, although on a small base.
In order to support the growth target, the company will increase the number of its retail outlets.
"We need to increase our footprint. I wish we started two-three years earlier. Our business would have been much much bigger," said Trieb, who joined Delsey in January 2013.
Delsey India began operations in 2011. Prior to setting up the joint venture in India, Delsey SA sold products in the country through a distribution agreement with VIP Industries since 2001.
At present, apart from the stand-alone stores, Delsey also sells its products through 152 points of sales such as departmental stores like Shoppers Stop. This will also be doubled by 2014, he added.
When asked bout investment for the expansion, Trieb declined to share details.
Delsey is focusing on premium luggage segment, which it expects to grow fast.
"Growth is going to come from the premium category. This category is going to grow for the next three-five years. It is good time for us," Delsey India Chief Operating Officer Anil Verma said.
The luggage market in India is registering growth rate of 12-15% every year and is estimated to be about Rs 2,500 crore to Rs 3,000 crore.
Delsey SA's top three markets include Europe and Middle East and the US.
