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Koutons plans to enter Saarc & Middle East market

20 Dec '06

2 min read

After the success of the brand in North India, the company is now focusing on Western India. It has opened 7 stores in Ahmedabad and 60 in Gujarat and Maharashtra and planning to double its presence in year's time.

To fund its aggressive growth plans, Koutons Retail India has raised Rs.112.60 crores this year as Private Equity with UTI Ventures and Argonaut being the main contributors.

While UTI ventures contributed 54.6 crores, Argonaut private Equity made an investment of Rs 46 crores and 12 crores were generated from other investors.

The total dilution being 17.86 percent As a matter of fact, Koutons has been on an aggressive growth path for the last 3 years and is currently not only consolidating its position in North India but also spreading throughout India.

To fund this growth, the company intends to go in for an IPO in the next year for raising a further sum of 140 crores.

Unveiling the future plans D P S Kohli Chairman, Koutons added that the aim is to carry the brands and products to international markets after consolidating in India.

The primary focus for expansion outside India would be SAARC and Middle East in the 1st phase followed by the rest of the world.

For Koutons, so far it has been a quantum leap and the expansion rate that was 0.84 stores per week in FY 04-05, touched 2.50 stores per week in 05-06 and has now reached 8.75 stores per week (1.25 stores per day).

That way, the growth has been 10 fold from FY 04-05 to 06-07. The company tested and proved its capabilities by launching a new economy brand- CHARLIE OUTLAW - by opening more than ONE HUNDRED stores in a single day on 5th October 2006.

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