Ethnic wear firm Biba Apparels is entering mass segment with a new brand Rangriti as part of its expansion strategy targeting turnover of up to Rs 650 crore in the next one year.
The company plans to add 100 Biba stores in the next two years in its network to its existing 140 exclusive outlets and is present at 250 places on shops-in-shop model in 61 cities catering luxury segment.
Aiming to tap the unbranded local market and the youth segment of tier 2 and 3 places, company has launched a new lines of Indian wear under Rangriti brand, which would cater the value segment starting from Rs 499.
"On the sales basis, we had a growth of 35 per cent from last year. We are targeting sales of Rs 550-600 crore in the next year. We had opened 39 stores last financial year and would add 100 in the next two years," Biba Apparels Managing Director Siddharath Bindra told PTI.
Biba, which has channels partner as Jabong, Flipkart and Myntra as its online sales partner believe that its revenue from the online traction would grow further.
"In the financial year ended March 31, 2014, online sales contributed less than 5 per cent. It would be around 10 per cent in next 2 to 3 years time," he added.
The company is also looking to have bring more designers in its fold through exclusive tie ups to boost its sales.
"We had tie up with Manish Arora and it gave us good exposure. Within luxury segment, we are open to more acquisitions and investment and we would like to build a portfolio of designers in it," said Bindra.
On being asked about the prospects of its value segment brand Rangriti, he said that consumption in tier 2-3 towns has increased.
"Over the last 10 years, lots of Women are joining the work force. They are now more conscious of their dress. There is a huge market and that why we are launching Rangriti," he said adding that there would be difference of sales channels, as Biba would have its own stores, while Rangriti's would be distributed through channels and local retail.
"Rangriti is women's ethnic wear fashion brand in the value segment and it is priced very sharply. The range of kurtas starts from Rs 499," he said adding that the intent is to tap the women ethnic wear market which is very big, valued between Rs 55,000 crore to 65,000 crore.
The market is still dominated by unbranded and unorganised sectors in the countryside and Rangriti is to tap that. The company is targeting Northern region including Punjab, Delhi, Haryana, Rajasthan, North East and Kerla and Tamil Nadu.
"Its our vehicle to address that unorganised and unbranded market. The company would adopt omni channel distribution pattern. We are launching it in across 250 stores," he said adding that by autumn of 2014, it would extended to 500 stores and by summers of 2015, it would be extended to 800 to 1,000 stores.