Vijay Textiles lines up Rs 50 cr retail spread plan

Vijay Textiles Ltd (VTL), an integrated manufacturer of home furnishings, has embarked on an expansion drive. The company plans to invest over Rs 50 crore in opening a chain of speciality retail stores in India and abroad for exclusive home furnishings, stated a company press statement.

The company has already taken a space of about 12,000 square feet on a long lease of 25 years for setting up its retail showroom at Ameerpet, Hyderabad, which is expected to be operational by July.

"We have put a lot of effort in creating new designs for producing exclusive home furnishing. We do not mass produce our high quality designs in order to retain exclusivity. As a result, we do not have the economies of scale to compete on price, which an exporter should possess in a free market economy," Says Vijay Gupta, managing director, Vijay Textiles.

The company has replicated its successful pilot outlet at Hyderabad into another retail store at Ameerpet. The company plans to open such retails stores in Vijaywada and Vizag in the next financial year. These outlets will over 25,000 plus square feet in size. The estimated pay back period is expected to be below three years, said the statement.

The company, with 40 years standing in the Southern India market has its retail outlet 'Vijay' in Hyderabad covering an area of 30,000 square feet, which boasts of over 20,000 designs conceived in-house. It incorporates an in-store design studio to offer exclusive curtains and upholstery to discerning customers.

The imported studio provides visual preview to the customers about the products, such as colour, fabric, construction, feel, drape and design amongst others, said the statement.

The market survey and feasibility studies have already been completed for its new retail centres. Future plans are to continue establishing at least one outlet every year in a different city.

The company will mount massive advertising campaign, similar to the one carried out for the Hyderabad set up, in a particular city, said the statement.

The company is also considering to establishing franchisee stores in three US cities Atlanta, Chicago and New Jersey and Singapore, UAE and Australia, which is expected to materialise in 2007 and will focus on the large Indian population in these locations, the statement said.