New Delhi: Donear Industries is planning to open 50 exclusive brand outlets (EBOs) focusing on its newly launched neo-stretch fabric, Rajendra V. Agarwal, managing director of the company told ETRetail.
Currently, within the Donear Group, the company operates under 3 flagship companies: GBTL, OCM Private Ltd, and Donear Industries. Under these entities, it operates five nationally recognized brands, accompanied by approximately 10-12 luxury brands, catering to a diverse consumer base across India.
“This year, we will be launching two new retail formats – specialty stores and multi-brand outlets. Specifically curated for menswear, the specialty stores will feature a comprehensive range of products crafted from our four-way stretch fabric.
“Apart from this, we will be establishing a chain of MBO stores under the Donear Group umbrella. These outlets will serve as one-stop destinations, showcasing collections ranging from premium luxury fabrics to general apparel,” he further added.
The company will be opening 50 EBOs and MBOs, spanning across 600-1,000 sq.ft, over the next 2 years via franchise format.
“This is a very asset-light model. But by and large put together the investment by a franchisee as well as the company, the one-year turnover investment is there,” he asserted.
“We will be initially targeting the West Zone and North Zone as we have a strong footprint there,” he further added.
The company is already operating over 450 D’Cot stores under Donear Industries Ltd. These stores are value format stores offering casual trousers and shirts along with other accessories.
“D’Cot is an independent profitable retail business where we are clocking around Rs 200 crore business,” he said.
In the B2C segment, the year-on-year growth for the company stands at 5-10 per cent.
“We are clocking EBIDTA in the range of 9-11 per cent and post depreciation and interest, we have a surplus of 5-6 per cent. We have a total business turnover of around Rs 1,700 crore. On average, we have a cashflow of around Rs 70-80 crore every year, out of which Rs 20-30 crore is required for existing business and we use Rs 50 crore for our expansion projects,” he explained.
Apart from this, in the next 2-3 years, the company is also planning to foray into the business of rugs and carpets by opening a greenfield facility in Jammu spanning across 10 acres.
“We would require more land, so we are in the process of that acquisition,” he concluded.
