Spykar to expand denim footprint in India

Company plans to increase the present 206 Spykar stores across major cities and towns to over 400 stores

Spykar, a specialist in making fashion jeans is expanding its footprint by adding new stores, products and extending its denim franchise into the FMCG category.

It is planning to increase its exclusive stores from the current 206 Spykar stores across major cities and towns to over 400 stores over the next three years.

"Spykar is the only Indian player who is making fashion jeans. The range includes the five-pocket jeans, fashionable denims, cargos, fatigues, loozers, jackets, tees, shirts and inner wear. We are adding over 50 designs every month. We have just launched a range of matching jeans, T-shirts and jackets targeted at the young boys and girls, who primarily drive our brand. Every six month we bring out a new fashion in our range. The latest collection bears witness to our exquisite, elaborate and gallant styling for the rebellious and self indulgent youth of today", said Sanjay Vakharia, director at Spykar Lifestyles.

According to Vakharia, India's total denim jeans market is of Rs 6000 crore which is mostly dominated by foreign players. Spykar is particularly targeting youth who are of 15 to 25 years of age for its products.

The expansion of stores will be focused around tier III and IV cities. Each new franchise exclusive store in the 800-1,000 sq ft size would invest Rs 25-Rs 30 lakh to open a store with a minimum of 1,800 stock keeping units (SKUs).

The company recently launched its autumn and winter collection in Pune to expand its foot print across India to cash in on growing demand for its range of jeans.

Spykar is now planning to extend its denim franchise into the FMCG category with a slew of products like talc, hand wash, body gels and shampoos.

It is already selling with deodorants and perfume and it is now increasing its FMCG distribution with a 'lifestyle' positioning. Spykar has already licensed its FMCG business to a third party (Staark Accessories) with 150 distributors.

Spykar also sells a range of eyewear, bags, belts, wallets and socks. Spykar is now planning to foray into FMCG category by launching products like hand wash, body gels and shampoos. It is now increasing its FMCG distribution with a 'lifestyle' positioning.

With the annual turnover of Rs 183 crore, the company is growing at CAGR of 18-20% last the 10 years.

Recently, Metmin Investments, a HNI fund owned by Apurva Bagri, has increased its stake from 32 to 60% for an estimated Rs 300 crore by buying out the stake of private equity player Avigo Capital Partners who sold its 28% stake to Metmin Investments who now promotes Spykar Lifestyles.