Rediff News
All News

NewsApp (Free)

Read news as it happens
Download NewsApp
Rediff.com  » Business » The Loot retail chain plans IPO in 2009

The Loot retail chain plans IPO in 2009

March 26, 2007 10:19 IST

Jay Retailing and Merchandising Pvt Ltd, promoters of The Loot chain of retail stores in the country, is planning to go public in 2009.

The company plans to run over 25 stores across India and garner a turnover of Rs 100 crore (Rs 1 billion) by that time, said Jay Gupta, managing director, after opening the maiden Loot store here recently.

Gupta said the company had created a niche for itself by offering a minimum of 25 per cent reduction in the maximum retail price of branded apparels and footwear. The company buys apparels or footwear in large quantities from brand owners and offers the goods to customers at discounted prices.

The company will compete with the discount sale offers by the brand owners themselves or with the 'owned outlets' where the merchandise is offered at reduced prices, Gupta said, adding that The Loot will score over these options on the strength of its ability to offer a greater variety of products and more attractive prices.

"We will stock the entire range of fresh merchandise, albeit after a time lag of three to six months," Gupta said.

He said the present pattern of introducing new designs every season had created a huge opportunity for the company as newer stocks can be picked up every three or four months.

"There is a very small section of consumers who buys and wears designs only when it is in season; the rest will look for well-known brands with a lowered price tag," Gupta said.

On the company's expansion plans, Gupta said they would follow a strategy to ensure its presence in state capitals, places near airports and at places where the population is above 6 lakh (Rs 600,000).

"These are the places where we have customers who understand our value proposition," he said.

Currently, the company, with 10 stores across the country, has its presence in Mumbai and Navi Mumbai, Hyderabad, Delhi, Nashik and Pune.

The company is yet to work out the size of funds it intends to raise through the issue, but will look at a valuation based on a sales turnover of Rs 100 crore at the end of 2008, he added.

BS Reporter in Mumbai/ Pune
Source: source
SHARE THIS STORY