Suman Layak
Kolkata, June 27
ITC Limited is set to expand its retail
offering but at the same time is looking at some consolidation. Wills Sport is launching
work-wears and leather accessories later this year; Expressions, the greeting cards
division is launching a range of gift items like note books, autograph books and wrapping
paper.
Alongwith, there is a brake on expansion of
the Wills Sport stores across the country. Sanjiv Keshava told Hindustan Times today that
the total number of stores would reach 50 by July, from 45 at present, and stay there for
a while. "We are looking at completing the financial year with 50 stores. If there is
compelling reason to open more stores we may consider that," Keshava said.
The company's design team is working on the
work-wear range for men and women while ITC is looking at tie-up possibilities for leather
accessories and bags.
Why is there a brake on expansions? The
company had planned a chain of 100 stores in India. Keshava says- "We are looking at
breaking even by the end of the current financial year. The projected turnover of Rs
150-200 crore by 2005 can be achieved with 60-70 stores."
"We are already present in 37 cities and if there is a locality in Delhi where we
feel there is market I would go and open a store there. But expansion would be solely on
the basis of market discovery" he added.
Sources say that the new launches of
work-wear and accessories can add up to 10 per cent to the life style retailing divisions
sales this year, projected at Rs 60 crore.
Chand Das, the chief executive officer of
greetings cards division of ITC said in an interview from Hyderabad "We are expanding
in the stationery segment. We are launching branded notebooks, autograph books, slam
books, bond paper in consumer packs and gift wrappers." "These would follow the
same channels as our greetings cards. The roll out would happen in next six months. We
would also advertise heavily on television," Das added.
In the second phase, the company is also
looking at non-paper gifts under the Expressions brand.
ITC Ltd has a five per cent share of the Rs
250 crore greetings card business in India last year and Das expects to double his market
share in the current financial year.
