The company plans to set up one store (costing Rs 50-60 lakh) every ten days and new stores would contribute 25 per cent to the top line of the company this year, said Bipin Gurnani, president, Provogue.
The company also has plans to scale up its discount format Promart in tier-II and III cities in the country. Currently, it has a store in Ahmedabad and plans to open one in Indore. The company would open four new Promart stores by the end of this financial year, Gurnani said. Each Promart store costs Rs 2-3 crore (Rs 20-30 million) to set up.
"Internationally, discounted apparel retailing constitutes 10 per cent of the overall apparel sales. It is a lesser margin and high volume business. We want to use this strategy in the Indian market effectively," he said.
Provogue posted revenues of Rs 238 crore (Rs 2.38 billion) for the last financial year and the company expected 40-45 per cent revenue growth from Provogue stable, he said.
The company has launched bed and linen as a pilot project in its Mumbai stores. The company has plans to launch new categories which compliment its businesses and needs of its clients, he said.
Provogue has 116 stores in nearly 61 cities and and runs a joint venture with UK-based Liberty International to build malls in the country.
The company runs Provogue Studio spread over 1,500-2,000 sq ft and Provogue Mega Store with around 4,000-6,000 sq ft. "Going forward, we will be present in more malls as part of our business strategy," he said.
