Heads Up For Tails, a petcare brand that recently ventured into the global market with its first store in Singapore, is targeting a 5% revenue contribution from international sales this fiscal year. Co-founders Rashi Narang and CEO Samarth Narang have set their goal to increase this figure to 15% by the end of the next fiscal year.
Looking ahead, the brand plans to further expand its presence in international markets by entering Dubai, Nepal, Bangladesh, and Kuwait.
“We have independently entered the Singapore market, but we are seeking a partner to facilitate our entry into Dubai, which will serve as the gateway to the GCC market. Additionally, we are seeking franchise partners in countries such as Nepal, Bangladesh, and Kuwait,” they explained.
Store Openings and Investments
During this fiscal year, the brand intends to open 5 stores in international markets and aims to double this count by the end of the next fiscal year.
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“For Singapore, we will invest 1 million SGD this fiscal year and 750,000 SGD the following year. In Dubai, we’ve allocated 500,000 USD for this financial year,” they stated.
The newly opened store in Singapore occupies a 500 sq.ft area and features 2,200 SKUs.
Domestic Expansion and Investment
Additionally, the brand is planning to invest INR 15 crore to expand the pet food manufacturing capacity of its 2 production facilities located in Bengaluru, aiming to meet the demand for the next 3-5 years.
“Currently, the combined area of both facilities is 70,000 square feet and operates at more than 70% capacity. We anticipate reaching 90-92% capacity utilization by the end of this year,” they asserted.
Currently, private labels account for 52% of the brand’s revenue, with plans to increase this to 65-70% within the next 24 months.
In India, the brand runs 93 retail outlets and aims to open 7 additional stores by the end of July.
“We aim to have 112 stores operational by the end of this fiscal year and anticipate opening 150 stores by the end of the next fiscal year. The majority of the planned stores will be situated in tier I and II cities such as Jaipur, Amritsar, Indore, Bhubaneshwar, Guwahati, Jodhpur, Raipur, Patna, and Orissa,” they said.
“All these stores will be owned and operated by the company,” they further added.
Of the 93 stores operated by the brand, 88 are owned and operated by the company, while the remaining 5 are managed by franchise partners.
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The typical store size for the brand covers an area of 850 sq.ft, with an approximate CAPEX of INR 30 lakh required to open each store.
“We plan to invest INR 12 crore to support our expansion plans in India,” they said.
Financial Performance and Projections
The brand, which provides 8,000 SKUs online and 2,200 SKUs offline, generates 70% of its revenue from brick-and-mortar stores, while the remaining 30% comes from online sales.
“Presently, our blended CAC stands at INR 700, with an online average order value of INR 2,450 and an offline average order value of INR 2,890. Our repeat customer ratio online is 32%, whereas offline it stands at 66%,” they asserted.
The brand, which concluded the previous fiscal year with a revenue of INR 278 crore, aims to conclude this fiscal year with a revenue of INR 345 crore.
“We aim for a sustainable 30-35% growth annually. We anticipate achieving EBITDA profitability by the end of the next fiscal year. Therefore, with our top line projected at INR 345 crore this fiscal year, we expect to be EBITDA negative by approximately INR 30 crore,” they concluded.
