Pantaloon Retail aims high

Thirty nine year old Mr. Kishore Biyani, managing director and chief executive of the Mumbai-based, Pantaloon Retail (India) Ltd, Mumbai has set himself a stiff target -- that of making his company the "largest ready-made garment retail chain in India". Tall order, indeed! Well, it would seem so, considering that, despite the drastic pruning of its franchisee network over the last three years, the company has stopped appointing new franchisees. Further, the company took a recent decision to stop the supply of its ready-made garments to other outlets. Mr. Biyani explains these moves -- at t

Thirty nine year old Mr. Kishore Biyani, managing director and chief executive of the Mumbai-based, Pantaloon Retail (India) Ltd, Mumbai has set himself a stiff target -- that of making his company the "largest ready-made garment retail chain in India".

Tall order, indeed! Well, it would seem so, considering that, despite the drastic pruning of its franchisee network over the last three years, the company has stopped appointing new franchisees. Further, the company took a recent decision to stop the supply of its ready-made garments to other outlets.

Mr. Biyani explains these moves -- at the inauguration of the new 26,000 sq. ft. spanking new showroom in Chennai -- by saying that the company wants to create its own distinct brand equity.

In 1995 Pantaloon Retail had about 72 stores, many of them franchised.  Now the company has around 40 outlets of which 14 are company owned. Against this backdrop, Mr. Biyani is taking the only route available to him to achieve his tall goals – that of setting up a chain of company owned outlets.

The company has aggressive plans to increase the shop floor area to about 250,000 sq. ft by end-2000. For this purpose, Pantaloon Retail has earmarked Rs 14 crore as the projected capital expenditure and Rs 10 crore towards media spend. The company plans to open mega stores in Ahmedabad, Bangalore, Indore, Jaipur and New Delhi before this year ends.

Mr. Biyani is confident that each outlet would break even at sales of Rs 10,000 / per sq.ft/per annum. Despite a fairly high stock turnover of 8 to 10 weeks, the company is working hard towards bringing it down further.

The reason for going in for mega stores in contrast to several smaller franchised outlets is the company's expanded product portfolio. From being a men's wear -- shirts and trousers -- company, Pantaloon Retail has added to its credit, several of branded ladies and kids wear.

The women's brands are; Annabelle (western office/casual wear), Srishti (ethnic wear – salwar kameez, ready made blouse) and Bare (casual wear for children/men/women). On the anvil are Agile (sports wear), AFL ( a budget product) and Scottsville (winter wear).

Apart from stocking its own brands, Pantaloon Retail outlets also stock other readymade garment brands and fashion accessories.

While aiming high on the domestic market, Mr. Biyani is also very keen on taking on the Middle East and UK markets. For this purpose, the company has recently invested in a Rs. 9 crore trouser manufacturing unit in Mumbai, where approximately 1,600 trouser pieces will be tailored a day.