New Delhi: Footwear retail player Pavers England Footprint Ltd is planning to invest $10 million in the Indian market as part of its retail expansion, which would see the company come up with 1,000 stores across the country by 2013.
The company, which started operations in India this January as a joint venture (JV) between UK-based diversified group Pavers Foresight Smart Ventures and the $50 million Indian company Forward Group, has presently 25 stores in the southern states, Delhi and the NCR.
“We are planning to take the total number of our stores to 1,000 across the country by 2013, up from the existing 25. As part of this strategy we will be investing $10 million during the first two years,” Pavers England Chairman Stuart Pavers said.
He added that the company would restrict itself to concession stores, shop-in-shops, franchise and department stores for the time being and think of venturing into flagship retail if and when the government relaxes the FDI norm of allowing maximum 51% foreign participation in single-brand retailing.
The company has also started work on a $3 million research and development (R&D) facility at Chennai for designing footwear, especially suited to Indian conditions.
The entire $10 million investment for the first phase of expansion would come from the company’s promoters.
“We will think about going for an IPO once the first phase is over and the company ventures into the second phase of growth, which would involve activating modern retailing practices including internet and mail order retailing on lines of western countries,” Pavers said.
“We are looking for a turnover of at least $300 million from the Indian market by 2013,” Pavers England Managing Director Yavar Dhala said.
Dhala said the multi-billion dollar Indian footwear market is organised to only 20-30%.
“There is a high potential for growth with the market reporting a year-on-year expansion of around 20%,” he added.
The company has already entered into partnership with big retail players including Reliance Footwear, Central, Loft, Fair Deal and others for sale of Pavers England brand.
Pavers England offers footwear in the price range of Rs900 to Rs 5,000 in the ladies category and Rs1,900 to Rs8,000 in men’s category.
“We are in the race for the medium segment market and we are offering the customers an alternative between the premium segment expensive European brands and the cheap Chinese-made ones,” Dhala added.