Mumbai: KDDL Ltd, formerly known as Kamla Dials and Devices Ltd will increase its watch retail ramp-up to reach 50-60 stores by the end of FY09 from the present nine presently, according to a top company official.
The company plans to invest Rs550-600 million to expand the network over two years and add more retail formats. It currently has multi-brand and single brand formats in high-street and mall stores, Yashovardhan Saboo, CEO said.
“We will only be accelerating as we go on and probably look at additional formats. We believe the growth in the market is significant enough for a faster ramp-up, ” he said.
“The funds would be partly from borrowings, partly from internal accruals and we would look at raising some from investors,” he added.
KDDL earlier had a target of 35 stores with an investment of about Rs 400 million. Earlier this month, the board decided to transfer the retail business into a wholly-owned subsidiary. The watch retail chain, Ethos, houses international brands including Omega, Baume & Mercier, Longines and Gucci.
Revenue from retail, which makes up a third of the firm’s earnings, is expected to almost double this year. The company also expects a 40-50% growth in revenues to Rs 1.1 to 1.2 billion by March 2008.
While the firm would finalize a plan to enter China in the next six months for its watch component business which is 60% of revenues, it also plans to expand its business into making watch cases and watch bracelets in India.
KDDL’s precision engineering business which has is now just 5% of revenues is likely to double this year and then move next on its small base.