Kolkata-based footwear manufacturer and retailer, Khadim India Ltd has raised Rs 90 crore from PE firm Reliance Equity Advisors. Khadim will use the funds to finance its expansion plan and to retire existing debt. Khadim has over 600 retail outlets, of which 112 are company-owned. According to Suman Barman Roy, the company’s CEO, Khadim plans to invest at least Rs 40 crore over the next three years to add 100 company-owned stores. Each store, having a size of 1,000-1,250 square feet, will entail an investment of approximately Rs 40 lakh. During the same period, another 80 outlets will be added through the franchise model. Focus will be on expanding presence in East, South and Central India.
According to Ishani Ray, Chief Financial Officer, Khadim India, the company issued compulsorily convertible debentures worth Rs 90 crore to Reliance Equity.
The debentures will be converted into equity shares at the end of this fiscal. Khadim currently has a paid-up capital of Rs 12.1 crore, with majority control lying with the city-based Roy Burman family. The company, which operates under the Khadim’s brand, posted a nearly Rs 422 crore turnover in 2012-13.