In an attempt to tap the retail market, Liberty Shoes Ltd launched its retail format, Revolutions. The chain of retail showrooms to be housed in various shopping malls in India and abroad will be operated under a separate company, Liberty Retail Revolutions Ltd. The company has plans to foray into the ceramic industry by the year 2005, for which a separate company will be floated. Further Liberty Shoes is expecting an order from Wal-Mart, which will be the first such supply to retail formats internationally by the company.
Speaking at the announcement of the first store to be set up at Inorbit Mall at Malad in Mumbai, Adarsh Gupta, executive director, Liberty Group, said that in the next two years, the company plans to have 25 Revolutions store in India and six stores internationally.
The store will be positioned primarily within shopping malls in India. Singapore, Kuala Lampur, Dhaka, Colombo, Karachi and Dubai are destinations internationally. “Revolutions is a service brand which will house the entire range of footwear which Liberty has to offer. The target audience is in the age group of 14-35 years and prices of Liberty footwear range from Rs 500-5,000,” said Mr Gupta.
Apart from footwear, the store will also house fashion accessories like watches and artificial jewellery, which the company will be outsourcing.
Liberty Retail Revolutions Ltd is the new company under Liberty Group, which will hold 51 per cent stake, while the rest will be held by the family. Mr Gupta said that the total investment which will be made in the next 24 months is to the tune of Rs 20 crore. The international foray will entail investment of Rs 6-8 crore. “The turnover by the year 2006-07 from the 25 outlets is expected to be in the region of Rs 75 crore, contributing around 4 per cent to the total turnover of the group,” he said.
He added that in the first year, the company expects a turnover of Rs 8-10 crore. For Liberty Shoes Ltd, exports contribute around 25 per cent to the total turnover and is in the region of over Rs 50 crore.