Koutons to usher-in Rs 325 cr by 2010; open 101 stores tomorrow

New Delhi, Oct 4 (UNI) Koutons Retail India today said it will pump in Rs 325 crore by 2010 on expansion activities including fabricating a well-knit network across India by opening up 3,000 branded showrooms.

The company, which seeks to become the single largest brand category, will invest Rs 225 crore by 2007-08 fiscal.

This will be funded by a second round of private equity, through which a sum of Rs 70 crore will be raised, and an initial public offer in the first quarter of FY08 to fetch Rs 120-130 crore.

Post-issue, around 28 per cent stake of its promoters will be diluted, taking it to 71 per cent from the present 94 per cent.

''Of this Rs 225 crore, a sum of Rs 64 crore will be spent on opening up of new stores. This is followed by Rs 45 crore on manufacturing activities, Rs 30 crore on acquiring new plant and machinery and Rs 75 crore towards working capital requirements,'' company's Chairman D P S Kohli told reporters here.

The remaining Rs 100 crore will be financed by internal accruals.

The company will open 1,400 Koutons stores by FY10 and take the figure to 2,000 by 2000-2011.

Koutons, which operates under the same brand name, today re-launched its apparel brand 'Charlie Outlaw', targeting men in the age group of 16-24 years, which it abandoned a few years ago.

A chain of 101 stores for the brand will be unveiled tomorrow across the North Western states including Punjab, Haryana, Chandigarh, Uttaranchal, Uttar Pradesh, Himachal Pradesh and Delhi, which will entitle them for a place in the Limca Book of World Records.

It will set up 250 'Charlie' stores this year and aims to open 1,000 such stores by 2010.

Presently it has a pan-India presence with 356 stores.

It is also looking at overseas expansion with opening up of stores in other countries including West Asia.

The ready-to-wear men's wear retail chain expects sales turnover of Rs 425 crore, of which Rs 164 crore has already bean achieved by September, as against Rs 158 crore in 2005-06.

It aims a growth of Rs 1,000 crore by next year and will spend Rs 27 crore this fiscal towards promotion of both the brands.

UNI CS PKS PM1612