Hakoba Lifestyle has embarked on an expansion spree and has decided to broadbase its product range. The company has forayed into home furnishings, gift articles and accessories.
Speaking at the sidelines of the inauguration of the company's first outlet in Pune, which is 39th in the country, Sharad Bhatia, president, Hakoba Lifestyle, said, "The company has earmarked Rs 20 crore (Rs 200 million) to fund the expansion," Bhatia said.
He added by the end of the current financial year the company hoped to launch around 60 stores across the country, which would cross 100 by 2008.
The lifestyle store is in the process of launching an exclusive men's label, Born Rich, in five months. At present, its collection includes coordinated salwar kameez materials, kurtis, shirts for men and women, lace, accessories and cotton pastels embroidered sarees.
Pioneer Embroideries Ltd acquired Hakoba four years ago. Since then, it is working as a separate company -- Hakoba Lifestyle Ltd.
Pioneer Embroideries are embroidery manufacturers catering to the unorganised market. The first Hakoba Exclusive store was started two and half years ago.
"The company's revenue is growing exponentially from Rs 2.5 crore (Rs 25 million) in the first year to over Rs 18 crore (Rs 180 million) in the FY06 and we expect it to cross Rs 50 crore (Rs 500 million) in FY07," said Bhatia.
"We contributed around 16 to 17 per cent to PEL this year we will contribute over 40 per cent in FY07," added Bhatia.
Bhatia said the company plans to expand to West Asia, the US and the UK markets. At present, PEL earns Rs 15 to 20 crore (Rs 150 to 200 million) of its revenue from direct exports and Rs 30 crore (Rs 300 million) from indirect exports.
"In three to four months, we will have our franchisees in Middle East and by the end of the year in the US and UK," says Bhatia.
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