Shri Lakshmi Cotsyn, a textile manufacturing company, is the newest company to get fascinated by the burgeoning home-fashion retailing business.
The company is gearing up to retail terry towels and bed linen under the brand name Shri Lakshmi.
The company will use its existing dealer base and open stores on a franchisee basis with an investment of Rs 1 crore per outlet. It will not offer its entire range of products in the retail outlets in order to avoid direct competition with its 300 established dealers.
Offering products priced at medium to value range, the first store will be launched in Delhi before Diwali, followed by stores in Chennai, Ludhiana, Chandigarh and Kanpur.
The company recently raised foreign currency convertible bond (FCCB) for around Rs 40 crore ($10 million) to meet the capital expenditure of its garment division at Roorkee, Uttaranchal, and will include garments in the retail portfolio of the company-owned stores.
Shri Lakshmi Cotsyn Pvt. Ltd posted an increase of almost 300 per cent in its net profit at Rs 15.03 crore for the quarter ended September 30, 2007, as compared to Rs 5.10 crore for the same period last year.