Citing growth of its apparel retail business in the domestic
market and owing to the slowdown in the West, textile major Arvind has decided to focus on the domestic market unlike exports for which it would ramp up its exclusive brand outlets over the coming years. Right now, 60 per cent of their business comes from exports and the rest from the domestic market. In the coming three to four years, they see the trend reversing as demand seems to be growing at home. In fact, earlier there was a lag between the export range and the domestic one, which they have now reduced to a greater extent.
The company has planned to shore up its outlets from current 100 to 240 by the end of financial year, 2014. Typically, each store attracts an investment of Rs 1,700 to 2,000 per sq. ft. The Arvind stores also display brands such as US Polo Association, Flying Machine and Arrow among others. In all, the company has joined hands with around 44 brands to be displayed in its stores. It has identified six focus markets of which the West and South form a major chunk. After Andhra Pradesh, company would move to Kerala, Karnataka, Tamil Nadu and continue focusing on Maharashtra and Gujarat.
The retail segment of the business currently stands at Rs 50 crores for Arvind, which would be doubled over the next financial year. They expect each store to fetch a turnover of around Rs 1 to 1.5 crore. The total turnover for Arvind last financial year stood at Rs 5,000 crores.