Footwear retail major Khadim India Ltd (KIL) is considering placing equity with a clutch of private equity investors to raise close to Rs 65 crore for investing in leather goods, footwear and its newly launched departmental store chain business.
If deals are clinched with PE investors, Khadim might drop its plan to come out with an initial public offering of equity shares, managing director Siddhartha Roy Burman told FE.
“We are considering whether to come out with an IPO or bring in strategic PE investments. A final call would be taken shortly,” Siddhartha said on the sidelines of the launch of Khadim's Egaro lifestyle departmental store in the city.
Considered to be the third largest footwear wholesaler and retailer, Kolkata-based Khadim is now planning to make a mark in the global retailing business and has initiated talks with several global retail labels for sourcing contracts.
“The talks are at an initial stage and we are now in the process of upgrading our designs and production to international standards. For a start, we have registered brand Khadim in the European Union (EU),” KIL president Suman Barman Roy said.
In a recent development, EU and United States have reportedly put anti-dumping levies on footwear from China and Vietnam, forcing the western retailers to look at alternative markets like India increasingly. “We want to cash in on the opportunity,” Barman Roy said.
In 2006-07, the retailer clocked a turnover of Rs 150 crore and expects to earn Rs 240 crore in the current financial year.
It has over 260 retail outlets across the country, of which 50 are company outlets.
This year, the company plans to add 50 franchisee outlets and a similar number of own stores, Barman Roy said.
The current year will also see the launch of three Egaro stores, two of which were launched on Friday at Bhawanipore and Howrah Maidan. The third one will come up in Sodepur soon.
“We plan to open about four Egaro stores every year,” the company president said.
Source : Financial Express