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Nalli Silks plans expansion in Tier II cities
Sep '11
Nalli Silks, a sari retailer based in Chennai, intends to spend around one to one and a half billion rupees over the next two years towards its country-wide retail expansion, with a special focus on Tier II cities.

Customers travelling from Tier II cities contribute a major portion of company's wedding sales, which constitutes around 50 to 60 percent of the firm's total sales.

The company now plans to go nearer to these customers by setting up sales points in their cities. The company embarked on expansion drive for its Tier II cities with launch of its outlet in Coimbatore in April this year.

Next, it plans to soon launch another three outlets in Kanchipuram, Ahmedabad and Puducherry. The Rs. 5.5 billion firm presently operates 24 outlets in leading metro cities like Bangalore, Mumbai, Chennai and Delhi.

Apart from a strong presence in the South, Nalli also has a good following in Delhi, which is its second biggest market next to Chennai. Hence, the company is looking forward to raise the number of outlets in the North, including NCR and Punjab.

Besides, it even plans to penetrate in the Eastern markets like Kolkata. Newer outlets are also proposed to be set up in Mumbai and Bangalore.

In addition to the conventional 'Nalli' format stores, the company runs three 'Nalli Next' outlets in Bangalore, Chennai and Mumbai.

The 'Nalli Next' outlets mainly have offerings to meet demands of present-day working women. The retailer wants to enlarge the reach of these outlets to all metro cities which are yet uncovered, particularly the North.

The retailer even operates two overseas outlets with one being in the US and the other in Singapore and is planning further expansion in Asian markets such as Sri Lanka.

Nalli Silks was established as a retailer of traditional silk saris, but today it has something for everyone – may it be designer saris, light weight crepes or Kanchipuram saris. The in-house production unit of the retailer even has its range of kurtis and apparels and is investigating the probabilities of penetrating into newer segments.

Fibre2fashion News Desk - India

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