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Indus Fila to enter into retail

Apparel maker and exporter, Indus Fila Ltd is mulling a foray into garment retailing by the end of FY-O8 besides an investment of Rs 170 crore in manufacturing over a period of 18 months.

PTI|
Nov 08, 2006, 03.20 PM IST
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MUMBAI: Apparel maker and exporter, Indus Fila Ltd is mulling a foray into garment retailing by the end of FY-O8 besides an investment of Rs 170 crore in manufacturing over a period of 18 months.

The Bangalore-based company is all set to clock a turnover of Rs 257 crore this fiscal and is eyeing a Rs 330 crore turnover by FY-08.

"We are preparing a roadmap for our entry into retail and initially we will invest Rs 20 crore to open 12 stores starting from Bangalore by end of FY-08 or start of FY-09," Company Vice Chairman and Managing Director Nitin Mandhana told the media.

The retail business is expected to initially serve two segments, infants and the age group of 13-18 years. "This is the age group we would like to start our operation in as these segments are untapped," he said.

In its expansion, Indus Fila is also looking at international acquisition of mid-size brands in Europe and US.

"We are looking at international acquisitions and would invest about $25 million to $100 million in it depending on the size of the target company," he said.

For funds, the company is evaluating different options like internal accruals, private equity placement or an initial public offer.

The company will increase its garment making capacity to 50,000 garment per day in next 18 months and its textile capacity to 100,000 metres from 60,000 metres per day.

About 80 per cent of Indus Fila revenues are through exports and remaining through trade business.
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