Mumbai: Diversified Aditya Birla Nuvo expects its textile division to more than double its turnover to Rs750-800 crore in the next 4-5 years, a senior official told reporters on Friday.
The textiles business of the firm comes under Jaya Shree Textiles, a wholly-owned unit which contributes 14% to the company’s manufacturing business.
Currently, the textiles business, which manufactures linen fabric and yarn, has a turnover of Rs300 crore.
Aditya Birla Nuvo has retail stores under the brand Linen Club, which retails fabric and ready-made garments. It plans to open 14 new outlets in the current fiscal year from 46 currently.
“Our focus is to expand our retail footprint going forward and in the next 5 years we plan to have 200 stores. It will all be franchisee outlets,” S Krishnamoorthy, president, textiles division, said.
The company is planning a promotion campaign for Linen Club and has outlined a capital expenditure of Rs15 crore for the current financial year.
The stores are expected to witness a same-store sales growth of 15% in FY12 compared to an average of 15-20% in the past years.
Aditya Birla Nuvo also plans to hike linen fabric capacity by 30-40% over the next 2 years.
“We will add capacity in our existing plant in West Bengal. The total linen capacity at the plant is 9 million metres per annum now,” Krishnamoorthy added.
The company also said it is witnessing a rise in raw material prices and has already hiked prices of fabric by 7-8% in the last six months.
“The hikes we have taken have covered us for the upcoming festive season. We will take a call on price hike in December,” said Abhey Nair, senior vice-president, Jaya Shree Textiles.