Premium travel solutions company Samsonite is eyeing a sales of Rs 1,500 crore by 2013, and plans to add 25 stores every year mainly in tier I and tier II cities, a top company executive said today.
"We are witnessing exponential growth in sales and have set a target of reaching Rs 1,500 crore by 2013. In FY10 we grew by about 44% to Rs 750 crore in revenues. So, to reach our target we plan to maintain the same growth level," Samsonite managing director Subrata Dutta told reporters here.
The luggage maker is doubling its volumes every two years and the trend is likely to continue for the next five years, Dutta said.
The company has 180 stores spread across tier I and II cities in the country and has plans to add 25 new stores every year.
Samsonite is also has plans to strengthen its workforce. Its headcount would go up by about 8% every year over the existing strength of 1,500 employees, he said.
"We are almost number one in the premium luggage segment and want to further validate our position," he said.
Samsonite has its suitcases factory at Nashik, Maharashtra, with a capacity to produce one lakh units per month and caters to the whole of Asia and parts of Europe.
When asked about increasing its present capacity keeping, Dutta said, the company is looking at outsourcing tie ups with exclusive manufacturers.
"We already have one such tie up with a factory in Umergaon in Gujarat, who manufactures exclusively for us. We may enter into another such tie-up in one year," he added.
Dutta said, the demand for the hard-side luggage is slowly becoming fashionable due to its slick designs and safety aspect.
"In 2009, our ratio of hard-side and soft side luggage was 20:80, which has now gone up to 25:75," he said.
The company also has its own factories in Argentina, Belgium, Chile and China along with three other factories in China that manufacture exclusively for Samsonite Corporations.
The total luggage market in the country is worth about Rs 3,000 crore out of which the organised sector accounts for Rs 1,700 crore.
Samsonite products range includes shoes, wallets, belts, backpacks, duffel bags and other travel accessories which contribute 38% to its revenue.
"We are planning to raise the non-travel segment to 50% by 2013," he said adding that there focus, however, will remain on the core business that is travel segment.
Samsonite Corporations has another popular brand under durable travel segment, American Tourister.
