Rupa bets on modern retail for Rs 2000cr topline by FY22

Knitwear major Rupa & Company Ltd is betting on modern retail to achieve Rs 2,000 crore revenue by 2022, a top company official said Thursday.

The share of modern retail to its annual revenue is currently about 3 per cent and is expected to increase to 10- 12 per cent by 2022, he said.

The company had reported net sales of Rs 1,108 crore as on March 2019.

Moving from a family-managed entity, the company has inducted professionals in the management to lift itself to the next level and the new strategy is internally termed as Rupa 2.0, the official said.

"We are targeting at Rs 2,000 crore topline by 2022 from Rs 1,108 crore of revenue and modern retail will play an important role in the journey," Rupa director Siddhant Agarwal said.

Opening exclusive brand stores across the country is also part of the new strategy, he said.

"To increase modern retail presence, we will open 150 company-owned and managed exclusive brand outlets (EBOs) across the country in two years," Rupa CEO Dinesh Lodha said.

Besides, the company will be making its presence in 300 large format retail chains and its products are already available on all major e-tailers of the country.

According to the company, modern retail includes EBOs, large format chains and e-commerce.

Despite presence in traditional channel through distributors, the companies are exploring the new modern approach to improve brand perception through direct engagement with the consumers.

Lodha said EBOs, named as Rupa Comfort Zone, will help its outerwear contribution to the company's growth as the segment currently gives 7-8 per cent of the total sales.

"EBOs will help higher sales of outerwear and we expect it to be doubled by 2022," Lodha said.