Welspun Retail to expand, break even this year
Welspun Retail Ltd, the retail arm of the Welspun group, which runs formats like Welhome and Spaces, plans to increase its turnover by 15 per cent this year, reports Saurabh Turakhia.business Updated: Jul 14, 2009 21:55 IST
Welspun Retail Ltd, the retail arm of the Welspun group, which runs formats like Welhome and Spaces, plans to increase its turnover by 15 per cent this year.
“We intend to increase our turnover from Rs 115 crore last year to Rs 135 crore this year,” said Dipali Goenka, director, Welspun Retail. “The company will break even at the EBITDA (earnings before interest, tax, depreciation and amortisation) level this year.”
The company will open around 20-25 new Welhome stores this year, adding to its current store size of 200.
The company has also taken a slew of cost-cutting measures, including renegotiating deals for properties and closing down unviable stores. The company has closed down around 5-10 stores since October. Rentals have come down by about 30 per cent in the last few months, while fixed costs have been reduced by about 40 per cent.
The company follows a strategy of a mix of franchisee and owned stores in a 50:50 ratio. It employs 500 people, including the staff operating at the front-end.