Indian Terrain Fashions aims Rs 1,000 crore revenue by FY 21

Indian Terrain Fashions is looking to be a Rs 1,000 crore firm by FY21 as the company is expanding its sales network and reach, particularly in north and eastern region, said a top company official.

Besides, the Chennai-based firm is expecting its kids- wear brand India Terrain Boys to grow four times to Rs 200 crore in next three years and higher contribution from accessories to its bottom line.

"We have a target of Rs 1,000 crore revenue by FY 2020- 21, which we are well on the way to achieve it," Indian Terrain Chairman & MD Venky Rajagopal told PTI.

He further added: "Our gross revenue this year (fiscal) would be around Rs 700 crore and we are growing with a CAGR (compound annual growth rate) of over 20 per cent".

The company has launched India Terrain Boys two years ago to focus on the fast growing kids' branded clothing segment.

"Its only been four seasons but it already have Rs 50 crore revenue and we have barely pushed its distribution. In the next three years, it going to be a Rs 200 crore brand," Rajagopal added.

Besides, the company also expect that its accessories segment will contribute more in the coming years as it is expanding its distribution and add more to the bottom line.

The company will also ramp up its distribution network in north, east and north-east region where the company feels that it has opportunity to enhance its presence in existing places and explore new cities as well.

Presently, 40 per cent of Indian Terrain's revenue comes from South India, 20 per cent each from west and north, and rest from 20 per cent from eastern region and online sales.

"Being a South based brand, our best performance is in South and next is West. North India is barely penetrated for us. We have good presence in Delhi and Punjab but there are areas where we have lot of distribution opportunities," he Rajagopal.

Online sales presently contribute 3 to 4 per cent of its total revenue, he added.

"The percentage of growth would be much faster in north and east but in absolute terms it would take some time as the base is small there," Rajagopal said adding that "in next 3-4 years, north would contribute much bigger percentage".

The company is now planning for big push in the denim segment.

On being asked on foray into overseas market, he said: "There is enough opportunity for Indian Terrain to grow because the opportunity to distribute exists."

The company presently spends 5 to 6 per cent of its total turnover on branding/marketing.

Indian Terrain has a network of around 1,000 point of sales in which 140 are company-owned-company-operated and 320 are large format stores and other 500 are multi branded outlets.