Relaxo eyes 20% sales growth in 2014-15

Relaxo Footwears Ltd, one of the leading players in the organised footwear category, is eyeing 20 per cent growth in total sales in 2014-15. Last fiscal, the footwear firm reported a turnover of Rs 1,200 crore.

"The organised footwear industry is growing at the rate of 18 per cent year-on-year. We hope to grow 20 per cent in this fiscal, higher than the industry average," said Abhinandan Dhoke, vice president (sales & marketing), Relaxo Footwears Ltd.

"Our significant sales growth has been possible on the back of strong Go-to-Market strategy defined by the company with clear-cut action points in each sales area. Some of the key driving factors behind this growth include the drive to penetrate in new towns and channels, constant investment behind our strong brands and internal operational efficiencies. We believe these factors will improve sales effectiveness and transform the sales function in future also," he said. The size of the total footwear market in the country is estimated at Rs 34,000 crore. Of this, the organised players have a share of 55 per cent.
 

"People are increasingly becoming more brand conscious. At Relaxo, we are focusing on affordability, comfort and durability of products. With a pan-India presence, Relaxo is one of the few listed companies in the footwear industry," Dhoke said.

In the organised sector, Relaxo has a share of 10 per cent. The firm has a network of over 200 exclusive retail outlets, mostly concentrated in the northern region.

The company has plans to open exclusive outlets in the eastern region as well but plans have not been firmed up, he said. "The eastern zone contributes 15-18 per cent to our total turnover. In Odisha, our market share is seven per cent. We believe that there is a huge opportunity in the state and we would like to expand through multi brand outlets," Dhoke stated.

He denied Relaxo's plans to foray into the leather footwear segment. "The leather footwear market is cluttered and is mostly dominated by the unorganised players. Besides, we don't want to enter the segment due to ethical reasons. We would rather concentrate on our own strengths," he added. Presently, the company has six manufacturing plants at Bahadurgarh (Haryana) and one each at Bhiwadi (Rajasthan) and Haridwar.