Arvind aims Rs 1,000 crore revenue from GAP in 5 years

Arvind Lifestyle Brands, which has signed a long term franchise agreement to bring American speciality retailer GAP to India, sees the brand generating revenue of Rs 1,000 crore in the next five years.

“GAP is a well-known, aspirational brand in India that enjoys a huge fan following and presents a large revenue proposition for us. While our stated numbers are Rs 500 crore over the next four-five years, which we think we will definitely achieve. We see GAP presenting a much larger revenue opportunity of Rs 1,000 crore in the next five years,” says Suresh J, MD & CEO, Arvind Lifestyle Brands Ltd.

Arvind has opened the second GAP store in the country in Bengaluru‘s Orion Mall. The first flagship store spanning 10,000 sq ft opened in New Delhi this May. The company will be opening seven more stores in Mumbai, Delhi, Pune and Bengaluru by March 2016, taking the total store count to nine and plans to ramp up its footprint to 33 stores in five years at a cost of Rs 10 crore per store, where the average size of a store is between 8,000-10,000 sq ft.

Positioned as a mass premium brand, GAP, which will fit in between licensed premium brands of Arvind such as Calvin Klein, Nautica and Tommy Hilfiger and mid-level brands such as Arrow and US Polo, is expected to further strengthen Arvind‘s men‘s wear and kids wear portfolios. “We want to be the No. 1 player in speciality men‘s wear and kids wear by 2019 and are therefore, building a portfolio of brands that will get us to that position,” adds Suresh.