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Blow Plast looks to branded retail expansion to augment growth

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Blow Plast looks to branded retail expansion to augment growth

Blow Plast Ltd, the marketing arm of luggage manufacturer VIP Industries, is looking to take the retail expansion route to accentuate growth. A company spokesperson on Thursday said that Blow Plast would open 60 to 65 exclusive outlets a year, over the next three years.

The total number of showrooms would increase to 126 by March 2007, while the retail space would be trebled from the existing 43,950 sq ft to 122,000 sq ft by March 2007 with 85 standalone brand stores and 41 franchisee stores, the official added.

Addressing reporters in Chennai, Parag Dani, Head-Retail, Blow Plast, said, "Currently, the emphasis is on high street, but over the next three years, a proper mix of malls and high street would emerge. The stores will provide a thorough retail ambience for high-end consumers. As far as shopping is concerned, we are looking at the entire gamut of retail formats, including own stores, departmental stores, specialty stores and hypermarkets to provide a retail experience of an international standard."

In Tamil Nadu, Blow Plast will increase its retail presence through exclusive showrooms to seven from the present count of four by March 2006. The total retail area would increase from the current 3,100 sq ft to around 8,000 sq ft by March 2007, in addition to which the company has identified space for two stores in upcoming malls in Chennai.

"We expect our business to grow multifold in the coming years and expect Tamil Nadu to contribute about 35 per cent of the south zone retail sales and about 9 per cent of national retail sales. This makes Chennai a very important territory, and hence, the focus to expand fast. The USP of these stores is that they will be located well within city limits," added Dani.

The spokesperson added that VIP would continue with its consistent brand building efforts, development of innovative products, merchandise and aggressive campaigns on its brands, efforts he reasoned drove growth and brand equity.

Blow Plast, part of the Rs 500 crore Dilip Piramal group, claims a 60 per cent share in the organised luggage market in India.


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