KOLKATA, June 23: Usha International, a
diversified consumer durable company– has decided to focus
aggressively on the organised retail front, a top company
official said.
Traditional distribution account for close to 90 per
cent of Usha’s revenue but now the company has drawn a
strategy to increase organised retail’s share rapidly.
“Currently, we have 51 company owned and company
operated usha branded retail stores in 13 cities. Now, we will
experiment with franchisee model to expand our exclusive store
footprint in tier II and III cities. Once this model
stabilises, then we can go for a major expansion spree in
raising the number of stores,” Usha International retail head
Kapil Kohli told PTI.
Now organised retail account for Rs 300 crore sales
out of Rs 3,000 crore topline of the company but it wants
greater share of sales through organised retail.
Organised retail for company consists of sales from
modern retail outlets, regional branded chains, Usha brand
stores and e-commerce.
“We are targeting at a 40 per cent CAGR. We have
already achieved 30 per cent jump last fiscal. We hope the
organised retail revenue to go up to Rs 500 crore in two years
from Rs 300 crore now,” Kohli said.
He said the main objective is for greater branding and
not for expanding margin through this effort.
Kohli said the company will launch high value and
premium products first at organised retail before offering it
in the traditional distribution channel.
The company has also decided to devise a strategy to
push sales on e-commerce platforms.
Analysts tracking consumer durable sector said such
strategies in the long run yield better margin and brand
recall.
Kohli said small appliances are the largest revenue
churner for the company followed by fans. The company was also
emphasising on Rs 12,000 crore water pumps segment with a CAGR
of 8-10 per cent. (PTI)
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