Fashion
Retail chain V-Mart will invest around Rs 200 crore to add nearly 200 new stores in different part of the country in the next five years.
The company is also targeting over four-fold jump in revenue to touch Rs 2,500 crore by 2020 with smaller towns expected to be its key growth drivers.
“We will have around 300 stores in the next five years with a revenue of around Rs 2,500 crore by then,” V-Mart Retail Chairman and MD Lalit Agarwal told PTI.
The company had a revenue base of Rs 574.96 crore in FY 2013-14. It is, at present, operating 109 stores in 91 cities.
Agarwal said: “We have clear vision that smaller towns will be our growth drivers as they have very high potential and aspiration level is growing up.”
Of the total stores that the company has, 56 are in tier III clusters, 35 are in tier II towns and 18 in tier I cities.
“Presently, the tier III clusters contribute between 55 to 60% of our revenue and we strongly believe that it would go up to 75% in next three years,” Agarwal said.
V-Mart is present at district level markets including Purnia, Saharsa, Madhubani, Motihari, Basti, Gonda, Lakhimpur, Bahraich and is in process to expand its base in the Eastern regions of Bengal and Orissa.
“We are finalising the properties there. Presently we are concentrating on Orissa and Bengal,” he said.
He said in order to drive up sales further, the company would enhance its in-house labels, while also increasing offering existing brands. Currently, it has 21 in-house labels, which contributes around 25% of the sales.
“We would increase the ratio to 50% from the existing 25% in the next three years. We would add more labels and expand the depth of the existing ones,” he added.
