Himatsingka may raise up to Rs150 cr

To up retail network; plans mid-market home furnishing brand

Himatsingka Seide Ltd (HSL), the Bangalore-based home textiles company, is planning to raise up to Rs150 crore to fund its expansion programme. The company’s board is meeting here on November 11 to take a decision on the ways and means to raise the money, a top company official said.

“We are taking up the second phase expansion programme later this year which involves a capital expenditure of close to Rs150 crore. To meet this fund requirement we are seeking board approval to raise the money,” Shrikant Himatsingka, executive director, HSL, said.

 

Talking to repoters, here on Tuesday, he said the company is looking at exploring the domestic market for expansion of its market. The company will launch a new mid-market home furnishing brand this year to penetrate deep into the domestic home furnishing market. The domestic market, which is pegged at Rs20,000 crore is growing at 30 per cent annually and the company is targeting revenues to the tune of Rs650-700 crore in the next four years from Rs50 crore presently, he said.

The Rs1,100 crore HSL is presently deriving 95 per cent of its revenues from the overseas markets. It is targeting Rs2,500 crore revenues in the next four years, and about 30 per cent of this will come from the domestic market, he said.

As part of its expansion plans, the company is planning to double its retail presence of its luxury branch ‘Atmosphere’. With the creation of new mid-market brand, the company plans to open around 120 retail stores across the country.

Over the last three years, Himatsingka has invested Rs1,100 crore to set up a new manufacturing facility at Hassan special economic zone and acquisition of three global brands in Europe and United States.

During the second quarter ended September 2010, the company has reported a 40.4 per cent rise in its net profit at Rs10.10 crore compared to the same quarter last fiscal. Its consolidated revenues grew by 22.8 per cent to Rs360 crore as against Rs293 crore in second quarter last fiscal.