Pioneer to increase presence in the eastern region

Mumbai-based embroidery fabrics and lace manufacturer major Pioneer Embroideries limited (PEL) has planned to set up 100 retail outlets for its Hakoba brand within the next 5 years, informed Harsh Bassi, executive director of Pioneer group.

Having already set fifteen retail outlets in Western and Southern region, PEL made its foray into the eastern states with its first retail outlet in Kolkata.

"We are now planning to expand our presence in eastern region. Talks are already on table for another outlet in an upcoming mal in South Kolkata", said Bassi.

The target sale from the Kolkata outlet has been set around Rs 2 crore in a year. PEL is also looking at Guwahati, Siliguri and other cities of the eastern states along with Pune and Ghaziabad, waiting down the pipeline after Kolkata, informed Bassi.

PEL is planning to set up their own retail outlets in in international market namely Dubai, United Kingdom and the United States.

"We might be coming up with our first overseas retail outlet in Dubai shortly", he informed. Pioneer group has recently acquired South Korean company which manufacturers value added embroidery product.

"We have recently acquired a plant and are in the process of allocating the machinery to India shortly", he added.

Discussing the production expansion plans of PEL Bassi informed that the company has set plan to invest around Rs 50 crore in a phased manner for its expansion plan primarily in Northern and Central Indian states.

With the removal of the quota regime under the World Trade Organisation(WTO), PEL is expecting a substantial hike in their export figure which currently accounts around 12 per cent of their overall sales, he added.

Presently, the company is exporting to countries like Nigeria, United States, United Arab Emirates and Brazil.With the expansion of the retail outlet, Pioneer group is expecting around 20 per cent growth in their sales figure to reach a figure of around Rs 120 crore from last year's figure of Rs 98.74 crore. The net profit of the group was Rs 7.30 crore, informed Bassi.

PEL claimed to have a market share of 14-15 per cent in the wholesale embroideries and fabric laces segment.