New Delhi: Home-grown menswear brand Indian Terrain Fashions Ltd wants to triple its revenue in four years, a target which the company says is an easy one. From Rs403 crore in the year ended 31 March, the company is eyeing Rs1,200 crore in revenue by 2022.
The Chennai-based company, which retails through 140 exclusive brand outlets, 500 multi-brand outlets and 320 large format stores, is planning to focus on southern and western markets in India for the next phase of expansion and will open 20-25 stores every year.
“South and west is going to be the focus over the next 12 months. Hyderabad is a huge market for us. We are expecting to close the year 2016-17 at Rs700 crore in revenue. We are very ambitious about growing," said Venky Rajgopal, managing director, Indian Terrain.
The company, which has been selling menswear since 2009, had launched a separate range for boys called ‘Indian Terrain Boy’ two years ago and is now planning to set up stand-alone stores for children, starting with Hyderabad in a bid to test waters.
“Indian Terrain Boy is an adult product for boys. At present, it clocks a revenue of Rs50 crore and we had not really launched it across our distribution centres," said Rajgopal. Earlier this year, Indian Terrain had also launched products in the active wear space to cash in on the $3.5 billion yet-to-mature category.
Over the next four years, Rajgopal expects the boys’ range of the company to become a sizeable chunk of “our business and record Rs200 crore in revenue".
India Terrain also sells through online marketplaces Myntra and Jabong.
Over the last two years, kidswear industry has seen a lot of brands venturing into the segment. In 2016, Pantaloons, a part of Aditya Birla Fashion Retail Ltd, had ventured into children’s wear and launched Pantaloons Kids. Earlier this year, women’s ethnic wear brand Biba Apparels Ltd also opened stand-alone stores that exclusively sell children’s apparel. Textile maker Arvind Lifestyle Brands Ltd, which sells foreign labels like Tommy Hilfiger, Nautica, GAP and Aeropostale, is also developing kidswear as a separate business vertical and will set up exclusive kidswear stores.
So far, kidswear market has remained largely untapped due to the dominance of unorganized and local players in the apparel sector. With brands increasingly looking at kidswear, the industry is expected to touch Rs1,600 billion by 2021, growing at a compounded annual growth rate (CAGR) of 12% between 2016 and 2021.The kidswear market in India was estimated at Rs900-950 billion in 2016, up from Rs790 billion in 2015, according to data from Deloitte India