New Delhi: Multi-brand discount chain The Loot on Tuesday said it has entered into an agreement with IT major Tata Consultancy Services (TCS) under which, the Tata Group company will manage the back-end and software support system for the retail chain.
The Loot is also ramping up its retail operations by aiming at a total of 200 outlets by the end of this fiscal, besides, launching two more private labels as it plans to achieve a turnover of Rs125 crore this fiscal.
“We have just signed the deal with TCS which will cater to our entire support system for points of sale, logistics, online sales and distribution. The software support system will be rolled out within a month,” The Loot managing director Jay Gupta said.
He said the tie-up with TCS is a part of the retail chain’s three-year investment plan of Rs 100 crore to spruce up back-end operations, in-house training, warehouse upgrade and marketing.
“The TCS contract is under a leased model. It is to get our basics and back-end right for the planned expansion of our retail operations,” Gupta said.
The Loot had recorded a Rs75 crore turnover in 2008-09.
“This year we are looking to take it to Rs125 crore, on the back of new launches and expanding the retail network,” he added.
The Loot is also planning to set up around 90 more outlets across the country by March 2010 and launch two more private labels.
“We have currently 111 outlets across the country. The recession has been good for us as customers have shifted from high-end brands to discount formats and we are looking to reach a figure of 200 outlets this fiscal to tap the market,” Gupta said.
Most of the newly planned outlets will come up under the franchise model, he added.
The Loot is also planning to introduce two more private labels over next few months- Road (rugged casual wear brand for men) and IOU (formal wear for both men and women).
“We have two private labels currently called Eccentrics (semi-casual) and Bus Stop (kids and women’s wear) which, contribute to around 25% of our total sales. We are looking at gaining more ground through the two new brands we plan to introduce,” Gupta said.
To a query on the likely sale of equity in the company, he said, “We are ready to dilute up to 25% stake and as a company we are ready to face an IPO. But everything depends on the market conditions.”