New Delhi: Textile firm Arvind Ltd on Tuesday announced foray into e-commerce space with its custom clothing brand 'Creyate' and is targeting revenue of over Rs 1,000 crore in three years.
Arvind Ltd said it expects e-commerce to be a major growth driver the company moving forward.Commenting on the announcement, Arvind Ltd Executive Director Kulin Lalbhai said: "Arvind Internet Ltd will be the vehicle that will enable Arvind's e-commerce vision.
Arvind sees e-commerce as a key growth driver for the group and we aim to be Rs 1,000 crore plus business in three years.
"Creyate intends to offer an alternative to ready-wear as well as traditional custom clothing and also has plans to launch stores in 15 cities within the next year.It already has stores in Bengaluru, Ahmedabad and Delhi and offers home visits in major cities, the company said.
The company also plans to take Creyate to global consumers next year starting with the US market.
"AIL is planning to take Creyate to global consumers next year starting with the US market, where online custom clothing is a large thriving market," the company added.
For the quarter ended June 30, the company reported 14 per cent growth in profit after tax at Rs 90 crore and revenues increase by 19 per cent to Rs 1,773 crore.
On custom clothing brand 'Creyate' as first launch from AIL, company officials said it intends to offer an alternative to ready wear as well as traditional custom clothing, and targets to be Rs 100 crore plus brand by next year.
Lalbhai said, "Creyate is our first baby...., but over time Arvind Internet will house multiple other businesses, so we don't see this as the only opportunity that Arvind will be playing in, we see it as the first....moving further we will see some other business models also coming.'
The company said Creyate has plans of launching stores in 15 cities within next year.
It already has stores in Bangalore and Ahmedabad. The company also said it is planning to take Creyate to global consumers next year starting with the US market, where online custom clothing is a large thriving market.
Responding to a question on investment, Lalbhai said "....as of now the capital outlay for the business is not substantial; it may be around Rs 20 crore for the first year, as the business scales up investment will also follow."
'Predominantly the investment right now would be factory and stores; ....manufacturing is happening at two factories in Bangalore," he added.
To a question about any plans to launch full-fledged online retail site, Lalbhai said, "Yes. That's what we were alluding to, that you may look forward to another large launch from the group towards the next fiscal."