Lilliput bets big on overseas market
The first kidswear Lilliput is planning to expand in the Middle East market with opening over 25 large format stores by March 2010, reports Varun Soni.india Updated: Dec 17, 2007 22:21 IST
Even as international kidswear majors like Disney and Zapp are entering or expanding in the domestic market, our very own desi brand, Lilliput, has made clear its global intentions by opening a store each in Bahrain and China.
The first kidswear brand to foray abroad, Lilliput is planning to expand in the Middle East market with opening over 25 large format stores by March 2010 as well as six stores in China by June 2008. The company will have 70 per cent of the stores in the franchisee model and the rest on ownership basis and the investment for the same will be sourced through internal accruals and debts.
Lilliput is close to cracking deals in Saudi Arabia and Egypt. The Bahrain store is a joint venture between Lilliput and the Al-Fanar Investment and Holding Company. The new joint venture company, Al-Fanar SN Retail WLL is a 60:40 partnership and the outlet covers an area of over 1,500 sq ft.
However, it’s not just the overseas market that Lilliput is bullish about. With a revenue target of Rs 700 crore, the company plans to increase its standalone outlets from the present 112 to 500 by 2009-10 in India, opening one store every fifth day. It also intends to increase its shop in shop presence to 450 by 2010.
Says Sanjeev Narula, Managing Director, Lilliput Kidswear Ltd, “We have increased our revenue target from Rs 290 crore to Rs 700 crore for 2009-10. Succeeding in such a price sensitive market is not easy, but I sincerely believe that if you cannot win a gold medal, you should not participate in the Olympics. Apart from giving immense variety and quality, our products comply with all EU standards.” Having captured 15 per cent of the domestic market, Lilliput leads the domestic kidswear brand market in a market that is worth a whopping Rs 14,000 crore.