Catmoss to invest Rs 4,000-mn in expansions

Mumbai: Kidswear chain Catmoss Retail said it would invest Rs 400 crore in the next five years to expand its outlets to 500 stores in India by 2010-11, besides it is planning to foray into overseas markets, including Australia and the Middle East.

'We have just crossed the 100 stores mark across the country and are adding another 100 odd in various Tier II and III cities this year. We also plan to set up 20-25 stores in Australia and the Middle East,' Catmoss Retail Chairman Ashwani Chawla said.

In Australia and the Middle East, the new Catmoss stores will come up in Sydney, Melbourne, Dubai and Abu Dhabi among other cities, he added.

The company is aiming for 500 stores in India alone by 2010-11, with an investment of Rs 400 crore, he added.

Chawla said, as part of its expansion plans, the company would invest Rs 50 crore this fiscal for rolling out 100 stores in India and 20-25 stores in Australia and the Middle East.

'From a turnover of Rs 75 crore last year, we are now targetting a figure of Rs 125 crore in the current fiscal on the basis of the expansion,' he said.

It also plans to hit the capital market in 2009, besides moves to attract private equity investments. The percentage of share offloading would depend on company's valuation, he said.

'The Rs 20,000-crore kidswear market in India is growing at 20-25 per cent annually and our focus is on tapping the upper middle segment in the price range of Rs 300 to Rs 1,000.

The expansion would keep intact the existing 70-30 ratio between company owned and franchisee outlets,' he said.

Catmoss is also venturing beyond the ethnic and party kidswear apparel segment and would soon be introducing kids accessories like shoes, belt, caps, sunglasses and bags for both boys and girls in the age group of two to 14 years, he added.