Bonkers Corner, a streetwear brand which was launched in 2020, is planning to invest Rs 60 crore to open a new sustainable manufacturing unit in Murbad, Maharashtra, Shubham Gupta, founder, Bonkers Corner told ETRetail.
The new manufacturing unit, which is expected to be operational in the next 2 years, will span across an area of 6 lakh sq.ft.
“Our current manufacturing unit, which spans across 2 lakh sq.ft, produces 2 lakh pieces per month, whereas with the new manufacturing unit, we will be increasing the capacity to 4 lakh pieces per month,” he asserted.
“Around 20-30 per cent of funds for the new manufacturing unit will be internally accrued, and the rest will be financed through bank loans,” he further added.
Apart from its online presence, the brand operates 13 stores – 3 in Pune, 3 in Mumbai, 1 each in Guwahati, Ahmedabad, Surat, Hyderabad, Bangalore, Indore, and Lucknow – and plans to open 15 new stores in the coming fiscal focusing on North India.
As all the stores of the brand are company-owned and company-operated, the brand will be further investing approx. Rs 40 crore to aid the offline expansion plans.
“Our average store size spans across 2,500-3,000 sq.ft and CAPEX involved to open one store stands at Rs 2.5 crore,” he said.
Currently, the D2C website contributes 60 per cent of its revenue, 10 per cent comes from marketplaces, and the remaining 30 per cent comes from its retail stores.
“The AOV on our D2C website stand at Rs 1,400 and CAC stands at 5-7 per cent of AOV,” he asserted.
At present, along with oversized t-shirts, the brand also offers bottom wear and a premium collection.
“Going ahead, we plan to expand into new categories like women’s wear, including dresses, shirts, and denim,” he said.
Currently, bottom wear contributes 60 per cent of the revenue of the brand and the remaining 40 per cent comes from t-shirts.
The brand, which has been growing 50 per cent year-on-year, has an EBITDA profitability of 16 per cent.
The bootstrapped brand, which closed the last fiscal with Rs 100 crore in revenue, is eyeing to close to this fiscal at Rs 140 crore and plans to take it Rs 200 crore by the next fiscal year-end.
“Over the next 2 years, we also plan to expand internationally starting with Dubai and Gulf countries,” he concluded.
