Liberty to float retailing subsidiary to handle imports

Liberty Shoes Ltd is all set to diversify into retailing and has firmed up plans of floating a retailing outfit, to be christened Liberty Retail Revolutions Ltd.

The company was keen to attract foreign equity partners from the international retail arena.

The retailing company will be a 100 per cent subsidiary of Liberty Shoes Ltd and its chain of outlets will feature footwear, sunglasses, fashion accessories, watches, jewellry and travel products.

"Footwear and some select travel accessories to be made available at the stores will be manufactured by Liberty Shoes, while the rest of the products would be sourced from outside," explained, Adarsh Gupta, executive director of Liberty Shoes.

At present, 51 per cent of the equity of the new company would be owned by Liberty Shoes while, 49 per cent would be held by the present promoters of the company individually "" making it a wholly owned subsidiary of Liberty Shoes.

"Liberty plans to sell off a portion of its stake to foreign fashion companies and retailing chains as strategic tie-up in the next few years," he explained. "As of now, however the company is yet to approach any foreign partner for the purpose," he clarified.

The rationale behind foreign strategic holding was to manufacture shoes for foreign buyers that would be targeted for the domestic market, and act as a sourcing hub for international operations, as well, Gupta explained.

Liberty planned to set up a total of 24 retail stores in the next couple of years and hope to clock a Rs 70 crore turnover by that time with a total envisaged investment of Rs 25 crore, Gupta informed.

In the first phase, six stores would be opened following which the company plans to open one store each in foreign locations like UK, USA, west Asia and Singapore. All these locations had large Indian populations.

The 50-year old Rs 225 crore Liberty Shoes has captured around 20 per cent of the market share in the organised sector. It generated around 65 per cent of its turnover through sales in northern India.

"This ratio is set to change in the next few years. Liberty hopes to sell around 50 per cent of its products in north India while the rest would be sold in other states," Gupta explained.