“Provogue, a leading retailer and manufacturer of lifestyle products, is all set to benefit from the growth in consumerism, higher disposable incomes and increasing penetration of organised retail. Over the past few years, the company has built a strong brand synonymous with lifestyle. The company is on an expansion mode. We expect Provogue to expand its total retail space to 0.5 million square feet by FY’10 as compared to 0.15 million square feet in FY’07.
“The company is also looking to diversify its product portfolio by adding new product lines such as accessories and personal-care products. With this, the company is aiming to target a larger wallet share from consumers, and leverage on its strong lifestyle brand. The company has also entered the value retailing format though Promart.
“Provogue is looking to target a larger base of customers as well as benefit from the strong growth in the value retailing segment. Provogue is also leveraging its retailing experience to venture into retail infrastructure development through its subsidiary Prozone Enterprises Pvt. Ltd, in collaboration with UK-based FTSE-100 company Liberty International Plc.
“The company plans to develop 16 million square feet across retail, commercial and hotel segments in its first phase of development. We expect significant benefits to accrue to Prozone due to this joint venture with Liberty. Going forward, we estimate the company’s revenues (standalone) to grow at a CAGR of 37 per cent and PAT at a CAGR of 53 per cent between FY’07 and FY’10.”