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Our Bureau

Opens 250th retail store in Gujarat; equity infusion likely next fiscal

Kolkata , Dec. 21

The Rs 131-crore Khadim India Ltd, now seeking a larger national presence in the footwear space, including at the multi-brand outlets, has chalked out expansion plans involving a capex of Rs 22 crore in the current year, and nearly Rs 50 crore in the next fiscal.

Equity infusion at some stage of the retail expansion plan in next fiscal is also not ruled out.

Unveiling the company's vision plan "to be present in every Indian home in the foreseeable future," Mr Siddhartha Roy Burman, Managing Director of the company, told newspersons here on Thursday that concerted efforts were being launched to consolidate the company's business in a more focused manner to utilise funds more efficiently.

He said the company had plans to set a Central Distribution Centre in Kolkata in addition to the existing one, and also further expand the regional distribution centres (RDCs) in Chennai and Delhi NCR.

According to Ms Ishani Roy, CFO, Khadim India being the flagship outfit will now have various divisions working as profit centres across the country.

She expected net sales during 2006-07 to be around Rs 160 crore.

Retail outlets

Announcing the opening of Khadim's 250th retail outlet in Ahmedabad, Mr Roy Burman said the company now had a presence in 22 States. (Some 199 in the East, 26 in South, 15 in North and eight in West.)

He said under the ongoing expansion plan, some six new retail outlets have been added in North, nine in East, two in West and seven in the South zone, taking the total number to 272.

Not outside Bengal

Asked if the company had any plans to set up factories outside Bengal, Mr Roy Burman replied in the negative, pointing out that Khadim India now produced footwear from own factory in Kolkata and also outsourced from West Bengal, Delhi NCR, Mumbai Agra and surrounding regions.

Queried on Khadim's market share in the retail market nationally, Mr Suman Burman Roy, President of the company, said since 75 per cent of the market was unorganised, no relevant data on market-size Statewise was available.

He estimated the total market to be around Rs 10,500 crore. Khadim is said to be the third largest player in the retail footwear segment.

The company is said to have emerged stronger after amalgamation of group companies.

The five group companies, namely Khadim Stores, Khadim Industries, Cold Enterprises Pvt Ltd, R.S. Land Development Pvt Ltd, and Khadim Holdings got merged with Khadim Chain Stores, to emerge as Khadim India Ltd.

More Stories on : Retailing | Leather | West Bengal | Brands

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