News: S Kumars plans 1 bln rupee retail expansion

(RTR 05/06/2006) Mumbai - Textile firm S Kumars Nationwide Ltd. will spend one billion rupees ($21.8 million) in 2006/07 on its retail unit as it signs up more international labels and prepares to launch its own brands, an official said.

S Kumars expected sales from the subsidiary, started in early 2006, to reach 1.15 billion rupees for the year to March 2007, Nitin Kasliwal, vice chairman and managing director, told Reuters in an interview on Monday.

"Our retail arm will sell the entire range of textiles across price points," he said.

S Kumars would open 113 stores in the current financial year to take the total number of stores to 129, Kasliwal said.

The company aimed for a revenue of 9 billion rupees and operating profit of 1.25 billion rupees from the retail unit by 2009/10, he said. It would have a store space of one million sq. ft in about four years, he said.

S Kumars, which already markets the Reid & Taylor suiting and casual clothing brand in India, would have a mix of licensed and owned brands in the clothing and home textile segments, he said.

The company is already investing 4.5 billion rupees to raise its fabric, garments and home textile capacity over four years.

Backed by rising middle class incomes and consumer spending in Asia's third largest economy, firms such as Himatsingka Seide. Welspun India and Pioneer Embroideries are investing heavily in retail expansion.

Shares in S Kumars fell 5.6 percent to 50.20 rupees in a weak Mumbai market.