Bangalore: Discount apparel and accessories chain The Loot (India) Pvt. Ltd, which operates the The Loot chain of outlets, plans to invest Rs100 crore by March 2009 to increase its stores from 30 to 100.
Managing director Jay Gupta says the expansion would be funded by internal accruals of the company, debt from banks, as well as capital it intends to raise by selling a stake to a private equity firm.
“We plan to raise over Rs100 crore by selling 25% stake in the company to a private equity (PE) firm. We currently have 28 offers in hand. We are looking for a partner who will not only help us in executing our expansion plans but, also act as a financial guide,” says Gupta.
He declined to identify any potential investors but said a deal will be finalized after April and that the most likely partner was a wealth manager.
The Loot offers clothes, footwear and women’s accessories with discounts in the range of 25-60% and claims that it does not sell defective goods orseconds.
It offers 60 brands including Reebok, Nike, Adidas, Pepe Jeans, Levis, Arrow and Lee. Gupta says they are able to offer these brands at a cheaper price because they take odd sizes, end of season as well as surplus pieces.
The company now plans to offer similar, designer Indian wear at its outlets in three months and a home furnishing range in three weeks.
“We are in talks with designers like Raghuvendra Rathore to create an exclusive range of kurtas, churidars, Punjabi suits as well as sarees for us. We are a mass consumer brand and would focus only on Indian wear for the time being,”Gupta says.
For its home furnishing range, the company says it isin talks with Bombay Dyeing and Manufacturing Co. Ltd and S Kumars Nationwide Ltd’s home textile brand Carmichael House.
The Loot had revenues of Rs25 crore last year and expects to end the current fiscal with Rs60 crore.
The Mumbai-based company says that even as it divests a stake to a PE firm, its plans to go public in 2009 remain unchanged, and that an initial public offering will be ready in some 18 months.