New Delhi: Woollen and cotton apparel brand Monte Carlo Fashions Ltd is all set to enter the footwear segment with a premium line of formal and casual wear shoes for men, starting next month.

Launched in 1984, the Ludhiana-based company will be sourcing and marketing the products through a third party, the details of which will be made public in September.

“We are venturing into shoes next month. There is a lot of potential in the market for a good brand. We have tied up with a Delhi-based company which will be our official brand licensee," said Sandeep Jain, executive director at Monte Carlo Fashions Ltd, refusing to disclose details about the tie-up and the product.

“It will be a premium line and will be sold through multi-brand retail outlets" he said, adding that the company is looking to earn initial revenue of 15 crore in the next three years from footwear segment.

Currently, Monte Carlo sells apparels for men, women and children through more than 200 exclusive brand outlets, about 1,300 multi-brand stores and 60 large format retail stores. The company also sells through online marketplaces like Flipkart, Amazon and Snapdeal.

Monte Carlo plans to open 15 to 20 stores in 2016-17, with a special focus on southern and western parts of the country where, Jain said, the brand needs to expand its presence. “We will be adding stand-alone and multi-brand retail stores in west and south India where our presence is lower compared to north and the east," Jain added.

Ankur Bisen, senior vice-president, retail and consumer at the retail consulting firm Technopak Advisors, said, “Apparel brands getting into footwear is an opportunistic move. It is largely to complement the apparel business."

He added that the footwear turnover of apparel companies usually doesn’t exceed 10% of the entire portfolio. “Footwear has a very different supply-chain compared to apparel. It has its own set of complexities," he said.

Incorporated by Oswal Woollen Mills Ltd, the flagship company of the Nahar Group, Monte Carlo registered a growth rate of 17% and earned 650 crore in revenue in the year ended March 2016. According to Technopak estimates, footwear market in India is growing at 12% per annum and is expected to touch $11.5 billion by 2020 from $6 billion in 2014.