Woodland to invest over Rs 100 cr to open 65 outlets
Chandigarh: Aero Group which owns Woodland footwear and apparel brand Friday said it will invest over Rs 100 crore on the opening of 65 new outlets and eyes 25 percent growth in turnover in the current fiscal.
Besides, the company has also firmed up plans to set up a new footwear facility at Baddi in Himachal Pradesh with an estimated outlay of Rs 50 crore this fiscal to cater to requirements of new outlets coming up in the country, a company official said.
"We will open 60 outlets of Woodland brand and five-six outlets of Woods brand in this fiscal and total investment in opening these outlets will be more than Rs 100 crore," Aero Club, MD, Harkirat Singh told PTI here Friday.
"About 60 percent of new stores will be opened in metro cities while remaining will be in tier-II and other cities," he said.
The company currently has 350 outlets of Woodland brand across the country. 'Woods' is a premium footwear, apparel and accessory brand.
"The proposed investment to fund the expansion of outlets will be met through internal accruals," Singh said.
Woodland clocked a total turnover of Rs 700 crore in last fiscal. "In this financial year, we are aiming 25 percent growth in turnover with more outlets are coming up," he said.
"Woodland has also decided to set up a new footwear making facility at Baddi in HP which will involve an investment of Rs 50 crore and it will be spread over 10-12 acres of land," he said.
"The new facility will be commissioned in current fiscal only."
Woodland has eight footwear facilities located in HP and Uttaranchal. Out of its total footwear requirements, 70 percent is met by owned facilities and 30 percent is sourced from outside. Specialised products are procured even from Taiwan and China.
Asked about impact of hike in input cost, Singh said immediately there is no requirement to raise products prices.
"Appreciation in US dollar against rupee has really pushed up prices of our input like leather, rubber, shoes etc. In last one year, our input cost has increased by 20 percent. But we are trying to control our selling rates (as far as possible)," he said.
The company raised its product prices marginally by 2-3 percent two months back to offset the increase in raw material cost to some extent.