New Delhi: Tata International on Thursday said it expects to achieve a revenue of up to Rs 600 crore in the next five years from its new footwear retail venture.
The company, which opened its second store under the brand ‘Tashi´ in New Delhi, said it is looking at having a total of around 20 stores across the country within the next one year.
“Our aspirations are high from this venture. Though it is too early to talk about it, we hope to get a revenue of around Rs500 crore to Rs600 crore in the next five years,” Tata International Limited executive director O K Kaul told PTI.
Tata International, which has an overall turnover of Rs2,500 crore, is the global trading arm of the Tata Group, with varied interests in leather, engineering, automobiles, steel and information technology, among other areas.
At present, its leather and leather product business, which includes supplying footwear to Europe and the US market, contributes around Rs600 crore to its overall turnover.
“We supply leather and footwear to leading global brands in the world. However, we are starting our retail venture in India since it is a huge footwear market, estimated to be Rs16,000 crore at present,” he said.
He further added that the company is planning to enter smaller cities, like Chandigarh, Pune and Jamshedpur, in the coming months. “We will open our stores across the country. It will be in metros, tier I, tier II and tier III cities.”
He, however, did not disclose the investment the firm is likely to put in for opening the stores in the next one year.
The company has invested around Rs55 crore on expanding capacities at its two existing leather and footwear plants in India in the last two years. At present, the plants have a total production capacity of 5 million square feet of leather and 12,000 pair of shoes per month.
Asked if the company is also looking at opening stores in overseas markets, Kaul said the firm would establish the business in India before moving into neighbouring countries.