Bangalore: The $3.5 billion (Rs16,800 crore) Dubai-based retail conglomerate Landmark Group, which operates Lifestyle, Home Centre, Max Retail and other retail formats in the country, plans to double its India revenue to Rs3,000 crore in two-and-a-half years.
To drive this growth, the group’s Indian arm, Lifestyle International Pvt. Ltd, will invest around Rs1,000 crore over the next two years to expand its various formats, with an emphasis on Lifestyle and Home Centre, executive director Kabir Lumba said in an interview on Wednesday.
For 2009-10, Lifestyle International expects revenue of Rs1,400 crore, with Rs1,000 crore coming from Lifestyle and Home Centre.
“After October 2008, footfalls became stagnant and we saw pressure on our furniture business. Things are, however, improving and even in this market, we have witnessed an increase of 9% in our average selling price, post discount,” Lumba said.
Lifestyle International is also looking at integrating all its formats under one roof. The integration this time would begin with having Dubai-based retail brand Splash under the Lifestyle umbrella in a shop-in-shop format. Some months back, the firm had integrated sportswear brand Kappa. Revenues from these brands are not sustainable for having stand-alone outlets.
“On the cost front, integrating all our formats under one roof will give us economies of scale. Also, the consumers will benefit too as everything will be available in the same place,” said Lumba. The firm has started scouting for properties that can accommodate all its formats.
Lifestyle International, which had to roll back international brands Springfield and VNC that it brought into India, now has no plans of launching any other format or brand here. It is planning to enter tier II cities such as Kanpur and Nagpur in 2011-12, with slightly lower prices.