Readymade apparel player Provogue would invest about Rs 45 crore (Rs 450 million) towards its proposed retail network expansion programme, which it is now banking on for growth. It will add 75 more outlets by the end of the financial year 2007-08 to take its retail network to 140 stores.
The expansion programme will be over in a period of two years. "Sixteen of these will be mega stores with almost 7,000 sq ft area each. Two of these stores are lined up in Hyderabad and Vashi in Navi Mumbai," said Nikhil Chaturvedi, managing director, Provogue.
The company is looking at Kolkata and Delhi among other cities to launch mega stores. Rest of the 31 outlets are 1,000-2,000 sq ft big, he added.
Provogue will also increase its presence in the country and will spread its outlets to 29 cities from the present 19. These include tier-III cities such as Jodhpur, Agra and Aurangabad.
He added that Provogue's just-launched denim and T-shirt lines will contribute 18 per cent to the total sales within a year. With the company expecting turnover to cross the Rs 230-crore mark in FY07, the two segments will be within touching distance of the Rs 50-crore (Rs 500 million) mark in sales.
"We are expecting a 45-per cent growth in our turnover. The company has already launched a jacket line for the winter. In the coming months, we will also enter the innerwear segment and later, launch suits," said Chaturvedi.
The company is expecting to close the present financial year with a 45-per cent growth from the 2005-close of Rs 115 crore (Rs 1.15 billion) in sales.
In a related development, Provogue has roped in model Ujawala Raut to endorse its ladieswear products. The company already has Fardeen Khan and Minissha Lamba as its ambassadors.
It outsources a small part of its garments and accessories, while most is produced in-house at its Daman plant. Chaturvedi added that within three months, the facility will reach full capacity of 1,000 pieces per day.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
