Donear Industries is gearing up to launch 50 exclusive brand outlets (EBOs), with a particular focus on showcasing its newly introduced neo-stretch fabric, as revealed by Rajendra V. Agarwal, the company’s managing director.
Presently, within the Donear Group, three flagship companies drive operations: GBTL, OCM Private Ltd, and Donear Industries. These entities oversee five nationally acclaimed brands along with approximately 10-12 luxury brands, serving a wide-ranging consumer demographic throughout India.
“This year, we will be launching two new retail formats – specialty stores and multi-brand outlets. Specifically curated for menswear, the specialty stores will feature a comprehensive range of products crafted from our four-way stretch fabric.
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“Apart from this, we will be establishing a chain of MBO stores under the Donear Group umbrella. These outlets will serve as one-stop destinations, showcasing collections ranging from premium luxury fabrics to general apparel,” he further added.
Over the next two years, the company plans to inaugurate 50 Exclusive Brand Outlets (EBOs) and Multi-Brand Outlets (MBOs), each spanning between 600 to 1,000 square feet, utilizing a franchise format.
“This is a very asset-light model. But by and large put together the investment by a franchisee as well as the company, the one-year turnover investment is there,” he asserted.
“We will be initially targeting the West Zone and North Zone as we have a strong footprint there,” he further added.
Under Donear Industries Ltd., the company currently manages more than 450 D’Cot stores, which operate under a value format. These stores specialize in offering casual trousers, shirts, and various accessories.
“D’Cot is an independent profitable retail business where we are clocking around INR 200 crore business,” he said.
For the company’s B2C segment, the year-on-year growth currently stands at 5-10 percent.
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“We are clocking EBIDTA in the range of 9-11 per cent and post depreciation and interest, we have a surplus of 5-6 per cent. We have a total business turnover of around INR 1,700 crore. On average, we have a cashflow of around INR 70-80 crore every year, out of which INR 20-30 crore is required for existing business and we use INR 50 crore for our expansion projects,” he explained.
Additionally, within the next 2-3 years, the company intends to venture into the rugs and carpets business by establishing a greenfield facility in Jammu, covering an area of 10 acres.
“We would require more land, so we are in the process of that acquisition,” he concluded.