A senior official of the company said that over the next couple of years to expand its footprint in smaller cities and towns with around 100-200 retail stores will be open by the textile division of Grasim Industries.
It anticipates a spike in demand for textile goods in the upcoming festive season.
“We are optimistic about the growth story of India. We plan to expand in both retail and wholesale businesses. Over the next two years, we plan to open 100-120 Linen Club retail stores in smaller cities and towns,” Satyaki Ghosh, CEO, (Domestic Textiles), told PTI in an interview.
The premium brand of linen goods used by Grasim Textiles is called Linen Club. A third of the company’s approximately Rs 3,000 crore textile industry is made up of linen.
Currently, around 217 Grasim Textiles has brand stores across the country.
Ghosh, who was in Kolkata to inaugurate a Linen Club store, said the company also plans to expand its reach to 12,000 multi-brand retailers in these markets, from about 8,500 at present.
“This will help Grasim Textiles reach a wider audience and increase its market share,” he said.
The company has allocated Rs 122 crore for textiles, insulators, and other items in FY’24. As part of its capex plan.
The official said that the textile industry, including apparel, had a sluggish demand trend in the first quarter of the current fiscal year. However, the demand started to pick up in July and August, driven by the Onam and Eid festivals.
Ghosh said the demand is expected to remain flat in the second quarter due to the delayed festive season. However, it is expected to pick up in the third and fourth quarters, driven by the festive season and the stocking season for summer.
Overall, the company expects the demand for textiles to grow by 5-6 per cent in the current fiscal year.
Exports have also started to increase, contributing about 25 per cent of the company’s textile revenue. The company anticipated exports to continue to grow in the coming months.
Grasim Textiles will also focus on e-commerce, which accounts for 15-18 per cent of its retail sales. In addition to offline expansion.
“The company plans to introduce an omni-channel strategy in the future that will allow customers to leverage both offline and online channels,” Ghosh said.
Grasim Textiles is also focusing on innovation and new product development. The company introduced a “waste-to-wealth” brand ‘Cavallo’, which is made from waste linen mixed with cotton.
This brand is targeted at the youth and is affordable. It is available exclusively through the online channel, Ghosh said.
Meanwhile, the company’s textiles revenue in Q1FY’24 was Rs 549 crore, decreased from Rs 620 crore in the corresponding quarter last year.
On Monday at 11.25 a.m. shares of the company were trading 0.3% up at Rs. 1,855.04.
