Knitwear maker Dollar Industries Ltd is expecting 15-18 per cent growth in turnover during the current fiscal backed by a higher demand particularly for its economy range of products. The company had registered a seven per cent growth in turnover at ₹1,037 crore in FY-21, as against ₹969 crore in FY-20.
The company operates in economy, mass premium and premium segments under its range of knitted garments, from basic wear to outer wear.
According to Vinod Kumar Gupta, Managing Director, Dollar Industries, the economy range account for nearly 42 per cent of its total sales. The company is hopeful of doubling its turnover to ₹2,000 crore in the next three-to-four years.
“We have chalked out a business plan and we are on the growth path. We expect to be able to achieve the target (of ₹2,000 crore) by 2025,” Gupta told
The company had registered nearly 52 per cent growth in turnover at ₹391 crore for the quarter ended September 30, 2021, as against ₹258 crore same period last year. The operating profit margin improved to 15.87 per cent (13.80 per cent) while net profit margin improved to 10.56 per cent (8.65 per cent) during the quarter.
Dollar, which launched the first Exclusive Brand Outlet (EBO) in Ayodhya this year, plans to launch similar outlets pan-India. It plans to add 10 more such outlets in Rajasthan and Uttar Pradesh by this fiscal.
“We would continue to focus on increasing our reach and range at the retail level to grow further,” he said.
Price hike
Raw material prices have been increasing over the past couple of months and the company recently made a price hike of around 12 per cent across categories. Since the prices have gone up, the demand for economy products have been on an upswing.
The company will wait and watch how the market reacts to the price hike before taking any decision on a further price increase.
“We will wait to see how the market reacts, we do not plan to raise prices any further as yet,” he said.
Jt venture with Pepe Jeans
Pepe Jeans, which had formed a 50:50 joint venture with Dollar Industries in India in 2017, recently decided to exit its joint venture.. It had offered Dollar to buy out its entire stake in accordance with the clause dealing with Right of First Offer (ROFO) in the said joint venture agreement.
Dollar, in exercise of its rights as per joint venture agreement, however, renounced the ROFO and agreed to the transfer of shares held by Pepe in Pepe Jeans Innerfashion in favour of G.O.A.T Brand Labs (G.O.A.T) incorporated in Singapore.
“We nominated G.O.A.T because of their expertise in digital space. Under the joint venture with G.O.A.T, we are hopeful of increasing our sales of the brand to ₹100 crore from the current ₹70 crore (in FY-21),” he said.