Agarrwal says they will be following a franchisee model to market the new brand. ?We will concentrate on high volumes, value for money,? he explains. Also, there will be no clash of brand identity between their existing brands Club Fox and MBA. With the setting up of 50 Londonar stores, the company is expecting to do business worth Rs 4 lakhs to Rs 6 lakhs per store every month and a total of around Rs 50 lakhs per store annually.
The major share of Naagal Garment?s business comes from their flagship brand Club Fox. Most of it happens through their exclusive outlets. ?Because of our EBOs, we sell garments at high volumes. Per store sales have been growing at a high rate while our production costs have come down that has boosted business,? he says. The company has 150 exclusive stores for Club Fox across India. For the fiscal year 2010-11 they plan to add another 100 stores. Initially, 50 stores will come up in Gujarat and Maharashtra. The cities on their radar are Surat, Baroda, Ahmedabad, Nagpur and Pune. The plan is to open one store per week. The other 50 stores will be distributed in Delhi, Madhya Pradesh, Chhatisgarh and Rajasthan.
The company which has been registering an average 40 to 50 per cent growth in the last two years is expecting a turnover of Rs 35 crores this fiscal. And next year we are aiming for Rs 70 crores. Agarrwal sums up by saying he wants their business to touch more than Rs 5 crores per month.