Koutons Retail to set up outlets in West Asia

Koutons Retail India (KRI) is planning to set up around 25 retail stores in Asian and West Asian countries under the Koutons brand name. The company is aiming at a turnover of nearly Rs 50 crore next year.

It is planning to strengthen its presence in overseas markets which has waned ever since it began to focus more on domestic markets. The company would ramp up its domestic operations as well by setting up new stores which have gone up to 425 this year.

The company's rate of expansion has increased to 8.75 stores per week this year from 2.50 stores per week last year and 0.84 stores per week in 2004-05.

The company would set up 1000 Koutons stores and 2000 Charlie Outlaw stores in the next three years entailing an investment of Rs 250 crore. KRI has already raised Rs 112.60 crore this year through private placement of 17.86 per cent of its equity share to UTI Ventures and Argonaut to the tune of Rs 54.6 crore and 46 crore respectively.

In addition, Rs 12 crore was raised from other investors. For the remaining amount of roughly Rs 140 crore, the company is planning to float an IPO by the first week of May 2007.

KRI has set a sales target of 425 crore this year and 1000 crore next year as against Rs 158.34 crore in 2005-06. Capacity expansion is on the cards to achieve the sales target.

The company is planning to pump in Rs 55 crore for retail operations while Rs 40 crore and Rs 45 crore would be spend on land, buildings and plants and machineries.

Rs 10 crore has been earmarked for setting up an information and technology department in the new plant in Gurgaon.

The company has written to Haryana Urban Development Authority (HUDA) for an additional 15 acres of land near the existing facility. About the launch of Charlie Outlaw, D S P Kohli, chairman, said the company is targeting the younger generation whose income has gone up recently.

With higher purchasing power, their enthusiasm to invest on fashion apparels has risen and hence the company has come out with cheaper alternatives.