Samsonite eyes Rs 1,000 cr rev from India

Samsonite, the US-based travel bags maker, today said it expects revenues from India to touch Rs 1,000 crore by 2015, for which it will double the number of its outlets to about 500 in the next five years.

The company, which is present in India as a joint venture -- Sampain Sales -- with an individual, Dr Tainwala, is aiming for a turnover of Rs 400 crore in 2009, and currently has a total of 235 stores in India.

"After recession, our growth rate was a little slower at 20-25 per cent this year, but we expect that we will bounce back to the earlier rate of 40 per cent from next year," Sampain Sales Director (Retail Projects) N P Singh told PTI on the sidelines of Franchise India Summit here.

If we grow by this rate, we expect Rs 1,000 crore sales by 2015, which can happen even earlier also depending on market improvement. Till then we will open 500-550 outlets across the country, he added.

He said in 2010 the company will add at least 50 stores, while it expects a revenue of Rs 480 crore next year, up from the targeted Rs 400 crore in 2009.

Commenting on retail expansion, Singh said the company's focus will be on Tier II and III cities. Of the existing 235 stores, 180 are franchisees while 55 are company owned.

"The upcoming stores will mostly be on franchise models," he added.

The company has a manufacturing facility at Nashik, in Maharashtra with an installed capacity of 3,000 bags per day, of which it is utilising only one-third.

Globally, Samsonite has 23 plants in different countries.