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| Alok Ind plans to double its retail store |
| Press Trust of India / Mumbai Dec 02, 2008, 19:36 IST |
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Even in times of economic uncertainty, textile and retail player Alok Industries plans to double the number of its retail store, H&A, across the country and expects the retail sector in India to "head toward decent growth".
"At present, we have 50 retail outlets by the name of H&A and we expect to double this figure by March next year. We are looking at expanding pan-India, especially in Tier-II and Tier-III cities," Alok Industries Chief Financial Officer Sunil Khandelwal said.
It intends to expend about Rs 20-25 lakh per store, aggregating to Rs 10-11 crore. Funding, for the most part, would be from internal accruals, but it is also looking at private equity funding for the expansion, Khandelwal said, adding that the company is eyeing setting up about 1,000 stores in the next five years.
"Our expansion is not very aggressive, we are looking at growing gradually. H&A stores, spread over an area of 800-1,000 square feet, are based on the rental format and are cost-effective stores," he said.
Each H&A store, Khandelwal said registers sales worth Rs 3.5 lakh on a monthly basis, which accrues to Rs 1.5-1.75 crore from all of its existing 50 stores. The retailer expects to garner Rs 10-11 crore in the coming six months.
"We clocked a 40 per cent growth in sales in the first six if this financial year at Rs 1,242 crore. We expect a similar growth in the second half of this fiscal too," he said, adding that his growth estimate for the company stands at 35 per cent for FY09 as against last year.
For fiscal 2008, sales of Alok Industries as a whole stood at Rs 2,170 crore.
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