Footwear major Khadim India Ltd is looking at premiumisation of its sub-brands, which has surpassed the parent brand in terms of revenue, to boost growth and margins.
According to a PTI report: The nine sub-brands of Khadim, including British Walkers, Lazard, Cleo, Sharon and Softouch clocked sales of Rs 256 crore out of the Rs 456-crore retail revenue as of March 31, 2017.
“We are undergoing premiumisation with our sub-brands for consumers aspiring to move up from mass segment to affordable fashion. However, we will restrict our sub-brands to the tier-II cities,” CFO, Khadim India, Ishani Ray told PTI.
The Khadim brand alone will cater to the Tier-III cities, with most products priced below Rs 500, she said.
Products of the city-based company’s sub-brands will be capped at Rs 3,500.
Khadim has 150 stores in metros and mini-metros, 109 in Tier-I cities, 124 in Tier-II and 446 in Tier-III towns.
According to CMD Siddhartha Roy Burman, the footwear maker will continue focusing on retail, distribution and manufacturing through the asset-light model.
Khadim will will issue its maiden Rs 543-crore IPO on November 2, primarily to allow exit by PE investor Fair winds, which currently holds 34 per cent stake in the company after investing Rs 90 crore in 2013.
The IPO in the price band of Rs 745-750 a share of Rs 10 each is valued at Price Earning (PE) multiple of 43.7 times of FY17 earnings.
Khadim has 150 stores in metros and mini-metros, 109 in Tier-I cities, 124 in Tier-II and 446 in Tier-III towns
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