Chennai-based premium menswear brand Indian Terrain is eyeing a 20 per cent growth for at least two years in a row as it expands retail footprint in North, East and Central India. East will include the North-Eastern States, where the brand is witnessing good traction.
The South and West have been traditionally its strong markets. The focus is now on tier-II and other prime markets in the East, North-East and Central India, apart from consolidating in its prime markets.
New stores
Some of the target destinations include Patna, Samastipur, Gaya (in Bihar), Bhubaneswar (Odisha), Jorhat (Assam), and Gangtok (Sikkim). According to Charath Narasimhan, CEO, Indian Terrain Fashions (listed on BSE and NSE), will look to add 20-25 new stores every year, some company-owned and others as franchises. Typically, the company focusses on company-owned and operated stores in prime locations in tier-1 cities that include malls and the high street. For tier-II, III and IV towns, it prefers franchisees.
Tier-I cities account for 55 per cent of the topline.
Indian Terrain currently has 160-odd standalone stores in 80 cities and towns. It is present across 1,200-odd multi-brand stores and has a presence in departmental stores such as Central, Lifestyle, Pantaloons, Shoppers Stop and so on.
“We are confident of clocking a 20 per cent year-on-year growth for at least two years now, unless there are major shocks. The retail market looks settled and the sentiment is positive with issues like GST and demonetisation behind us,” he told BusinessLine .
The company, for the first nine months of the fiscal (April to December) posted a revenue of ₹295 crore and a net profit of over ₹18 crore. It competes with the likes of Allen Solly, Louis Phillipe, and US Polo Association in the menswear segment.
Indian Terrain will also focus on the boys-wear (between ages 4 and 14). The segment, introduced two years back, has been witnessing good traction. The plan now is to expand the portfolio as well as the presence of “Indian Terrain Boys”.
“Some 60 of our company-owned stores have the boys portfolio. We will now look to expand its retail presence,” he said. Nearly 7 per cent of its topline comes from the boy’s line.
There are no immediate plans to foray into the womenswear segment too.
Focus on e-commerce
According to Narasimhan, the company is also focussing on ramping up online salesthrough Myntra, Jabong and others. It accounts for 4-5 per cent of revenues.