Royal Classic unveils expansion plan

The Royal Classic Group is planning to open 50 more outlets for its apparel brand, Classic Polo, by March next year. The company says it has a budget of Rs 9 crore for the expansion. Classic Polo has 27 showrooms in the country.

"We had earmarked an expenditure of Rs 10.75 crore to expand our operations by opening 100 stores. But so far, we have only been able to take the number to 27 stores, with an expenditure of Rs 1.75 crore. So we are still left with Rs 9 crore," company's executive director R Sivaram said.

At present, Classic Polo has most of its outlets in south India, and it wants to focus on the south in the near future also.

"We are not looking at opening too many outlets in the north. We want to consolidate our position in the south first," Sivaram added. The company plans 10 more stores in Bangalore by March 2007. It is looking at opening standalone stores.

The mid-premium brand, which includes T-shirts, trousers, jackets and sweaters, is targeted at customers in the age group of 25-40 years with an income of Rs 8,000 and over.

The company also has an expansion plan in place for its brand of men's innerwear and sportswear 'Smash'.

At present, Smash is sold in 200 multi-brand outlets in Karnataka alone and the company wants to widen its presence through 600 multi-brand outlets by the end of this fiscal.

Royal Classic Polo Group recorded a turnover of Rs 225 crore last fiscal, to which Classic Polo contributed Rs 18.5 crore. This fiscal, the brand is expected to contribute Rs 36 crore to the company's turnover.