Cantabil Retail eyes Rs 55 cr capex by FY26, to expand production capacity

Nigam shared details about the company's major project, set for completion by mid-September

(This report has been updated) 

Menswear major Cantabil Retail India plans to invest ₹55 crore in capital expenditure for the financial year 2025-2026 (FY26) for expansion of retail stores, enhancing production capacity, and new project completion.

 

The company also aims to achieve a total production capacity, inclusive of warehousing and backend space, of approximately ₹5 lakh square feet during this period, up from ₹3 lakh square feet.

 

“Our primary investment is in capital expenditure for store openings. We add 60-70 stores annually, investing around ₹1,700 per square foot. Store expansions require ₹20-25 crore each year. In the last 4-5 years, we invested ₹150 crore in new openings. A larger project is set to conclude in FY26. For the next financial year, our capex requirement is around ₹50 crore, with a maximum of ₹30 crore projected for FY27 and beyond,” Shivendra Nigam, chief financial officer, Cantabil Retail India, told Business Standard.

 

Sharing details about its major project, set for completion by mid-September, Nigam said the project will integrate a warehouse with an office, located in New Delhi.

 

Last year, the New Delhi-based brand manufactured approximately 15 lakh pieces. In 2024, it expanded its existing factory with a washing plant, boosting production capacity.

 

By FY26, it plans to add another floor to its facility. The total warehousing space will churn out about 70-80 lakh pieces.

 

“We plan to enhance our existing capacity, reflecting our maximum potential going forward. However, as a co-retailer, we have no immediate plans for a new factory but are focused on upgrading our current facility,” Nigam said.

 

However, Cantabil remains consistent in its strategy, focusing on annual KPI-driven growth of 18-20 per cent. Positioned in the mid-premium segment with an ASP (average selling price) of ₹1,100, the brand emphasises basic fashion over micro-trends, offering a diverse range of formal and casual wear. Moving forward, it prioritises core essentials, colours, and fabrics.

 

The brand expects that footwear, which was introduced a year ago, will play a major role in the company’s sales growth in the coming quarters. 

 

Men’s apparel drives 81 per cent of sales, while women’s contribute 12 per cent. Kids’ wear (4-5 per cent) and accessories (5 per cent) are growing. Expanding categories include perfumes, toiletries, and footwear, which meet expectations and are set to play a key role, including on e-commerce platforms.