Fashion retailer Indian Terrain is betting big on its boys' wear segment and on sales through e-commerce portals.
“Our boys’ segment in scaling up fast and we expect revenue from this segment double in three years,” said Charath Narsimhan, managing director, Indian Terrain, in an exclusive interview to CNBC-TV18. “We are targeting a 35 to 40 percent growth in the segment,” Narsimhan added.
At present, Indian Terrain’s boys' wear vertical contributes only 10 percent to the company’s overall business.
With these targets in mind, the retailer announced on Monday that it had roped in MS Dhoni as the company’s brand ambassador for two years.
“MS Dhoni is on top of his game on the popularity front, and several of our campaigns will be built with him,” said Indian Terrain’s founder and chairman, Venky Rajagopal, who also spoke exclusively to CNBC-TV18 after the announcement.
“Boys in India look up to Dhoni, and his presence will boost our boys’ wear range,” Rajagopal added.
It isn’t just boys' wear that is expected to see growth in the next few years. Indian Terrain is also banking on its sales from e-commerce portals to contribute more to its overall business. “The contribution from digital sales channels will rise from 14 percent to 19 percent, in three years,” said Narsimhan.
The company’s big digital bet, however, hasn’t stopped Indian Terrain from looking to boost its physical presence through exclusive brand outlets. The retailer has said that it will touch 200 exclusive stores by March 2020, with the management adding that 300 stores in three years is a realistic target.
“We are currently at 170 exclusive stores and will touch 300 stores in the next three years, since we’re growing at a rate of 40 stores per year,” said Narsimhan.
The company also said that its target to hit Rs 2,000 crore in gross revenues by FY24 was on track. “We used to be weak in winter clothing because our North Indian presence wasn’t strong,” said Rajagopal, adding “but with our retail presence in North India increasing, winter clothing will contribute significantly to our turnover.”
At present, Indian Terrain’s gross revenue stands at Rs 900 crore, with the company projecting a 50 percent growth in the next three years.
The retailer also reported a 10 percent year-on-year growth in its Q4 revenues -- Rs 118.7 crore in Q4FY19 versus Rs 107.9 crore in Q4FY18. However, the company reported a marginal fall in profit after taxes in Q4FY19 -- Rs 6.7 crore versus Rs 7 crore in Q4FY18.