Biba plans to add 100 more stores in next two years

Ethnic wear firm Biba Apparels is entering mass segment with a new brand Rangriti as part of its expansion strategy targeting turnover of up to Rs 650 crore in the next one year. The company plans to add 100 Biba stores in the next two years in its network to its existing 140 exclusive outlets and is present at 250 places on shops-in-shop model in 61 cities catering luxury segment.

Aiming to tap the unbranded local market and the youth segment of tier II and III places, company has launched new lines of Indian wear under Rangriti brand, which would cater the value segment starting from Rs 499.

"On the sales basis, we had a growth of 35 per cent from last year. We are targeting sales of Rs 550-600 crore in the next year. We had opened 39 stores last financial year and would add 100 in the next two years," said, Biba Apparels, Managing Director, Siddharath Bindra.

Biba, which has channels partner as Jabong, Flipkart and Myntra as its online sales partner believe that its revenue from the online traction would grow further. "In the financial year ended March 31, 2014, online sales contributed less than 5 per cent. It would be around 10 per cent in next 2 to 3 years time," he added.

The company is also looking to have bring more designers in its fold through exclusive tie ups to boost its sales."We had tie up with Manish Arora and it gave us good exposure. Within luxury segment, we are open to more acquisitions and investment and we would like to build a portfolio of designers in it," said Bindra.
On being asked about the prospects of its value segment brand Rangriti, he said that consumption in tier 2-3 towns has increased.

"Rangriti is women's ethnic wear fashion brand in the value segment and it is priced very sharply. The range of kurtas starts from Rs 499," he said adding that the intent is to tap the women ethnic wear market which is very big, valued between Rs 55,000 crore to 65,000 crore.

The market is still dominated by unbranded and unorganised sectors in the countryside and Rangriti is to tap that. The company is targeting Northern region including Punjab, Delhi, Haryana, Rajasthan, North East and Kerla and Tamil Nadu.