Undeterred by the impact of COVID-19, Indian Terrain Fashions Ltd. (ITFL), a leading player in branded men\u2019s casual wear, has decided to open 16 exclusive outlets in smaller towns by the year-end, said a top official.<\/p>\n
\u201cCOVID-19 has no doubt hit our sales during the first quarter,\u201d said Charath Narasimhan, MD and CEO, ITFL.<\/p>\n
\u201cBut, it also enabled fast-forwarding certain thoughts as consumer consumption behaviour kept on changing,\u201d said Charath Narasimhan, managing director & chief executive officer, ITFL.<\/p>\n
ITFL started to feel the heat of COVID-19 since the first week of March as its inventory got stuck in various places. \u201cThe first quarter was a washout. But, things are improving now. Last month, we posted about 50%-60% of July 2019 sales volume,\u201d he said.<\/p>\n
\u201cWhile the pandemic continues to present unprecedented challenges, it is integral to adopt to the new normal and map a strategic journey,\u201d he said.<\/p>\n
\u201cThere is a general resilience in consumption from rural areas compared with the urban metros. So, we are in the process of opening 16 franchise-led stores by December end,\u201d he said.<\/p>\n
Stating that their investments would be limited to supply of stocks, he said the new stores would come up in smaller towns such as Hubli and Ooty,\u201d he said.<\/p>\n
According to Mr. Narasimhan, rural areas accounted for 40% of total revenue while the balance came from metros that housed 1,000 multi-branded and 400 large-format stores. Currently, ITFL had 180 exclusive stores, of which 160 were operational.<\/p>\n
Earlier, the company had planned to almost double its exclusive outlets to 300 within three years. However, the plan got postponed by almost 18 months due to COVID-19.<\/p>\n
Regarding capital expenditure, he said in a normal year, the company would have spent almost \u20b96-7 crore either on opening new flagship store or refurbishing the existing ones. This year, ITL would invest only in technology upgradation.<\/p>\n
\u201cWe are doing well in boys\u2019 wear [segment]. We will be expanding the entire gamut of products to double market share over the next two years,\u201d he said.<\/p>\n
ITFL ended FY20 with a 12% decline in its turnover to \u20b9374 crore. It expects the turnover to decline further during FY21 due to the pandemic. The company may see some recovery in the next fiscal.<\/p>\n<\/div>\n