Category: GARMENTS
Country: India
Region: South Asia
It also hopes for a surge in demand for textile products in the upcoming festive season
By PTI
September 11, 2023
2 min read
Kolkata: The textile division of Grasim Industries is planning to expand its footprint in smaller cities and towns by opening around 100-120 retail stores over the next couple of years, a senior official of the company said.
It also hopes for a surge in demand for textile products in the upcoming festive season.
“We are optimistic about the growth story of India. We plan to expand in both retail and wholesale businesses. Over the next two years, we plan to open 100-120 Linen Club retail stores in smaller cities and towns,” Satyaki Ghosh, CEO, (Domestic Textiles), told PTI in an interview.
Linen Club is Grasim Textiles’ premium brand of linen products. Linen comprises about one-third of the company’s textile business of around Rs 3,000 crore.
Currently, Grasim Textiles has around 217 brand stores across the country.
Ghosh, who was in Kolkata to inaugurate a Linen Club store, said the company also plans to expand its reach to 12,000 multi-brand retailers in these markets, from about 8,500 at present.
“This will help Grasim Textiles reach a wider audience and increase its market share,” he said.
As part of its capex plan, the company has allocated Rs 122 crore for textiles, insulators, and other items in FY’24.
The textile industry, including apparel, had a sluggish demand trend in the first quarter of the current fiscal year. However, the demand started to pick up in July and August, driven by the Onam and Eid festivals, the official said.
Ghosh said the demand is expected to remain flat in the second quarter due to the delayed festive season. However, it is expected to pick up in the third and fourth quarters, driven by the festive season and the stocking season for summer.
Overall, the company expects the demand for textiles to grow by 5-6 per cent in the current fiscal year.
Exports have also started to pick up, contributing about 25 per cent of the company’s textile revenue. The company expects exports to continue to grow in the coming months.
In addition to offline expansion, Grasim Textiles will also focus on e-commerce, which accounts for 15-18 per cent of its retail sales.
“The company plans to introduce an omni-channel strategy in the future that will allow customers to leverage both offline and online channels,” Ghosh said.
Grasim Textiles is also focusing on innovation and new product development. The company introduced a “waste-to-wealth” brand ‘Cavallo’, which is made from waste linen mixed with cotton.
This brand is targeted at the youth and is affordable. It is available exclusively through the online channel, Ghosh said.
Meanwhile, the company’s textiles revenue in Q1FY’24 was Rs 549 crore, down from Rs 620 crore in the corresponding quarter last year.
Courtesy: Indiaretailing.com
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