Indian Terrain ties up with Westside, to be sold as a brand

Venkatesh Rajagopal, CMD of the company, in an interview with CNBC-TV18’s Udayan Mukherjee and Mitali Mukherjee, spoke about their tie up with the ladies and men fashion store Westside and the road ahead with this joint-venture.

Rajagopal said, "Westside has invited us to sell Indian Terrain as a brand through their chain. We will start with selling in 10 of their outlets and then roll it out to others in over next 24 months."

Below is the verbatim transcript of the interview. Also watch the accompanying video.

Q: Are you on track to deliver the guidance that you have set out for FY11 in terms of sales? What do you hope to do in FY12 on your topline?

A: We are absolutely on track to meet our guidance. For the next year, we are confident of Rs 150 crore sales, which is what we are planning for. Going by the traction received this year, we will meet our target.

Q: What about FY12? Can you lay out some broad numbers for us? At what pace is the business growing, topline as well as bottomline?

A: This year we will close at Rs 120 crore of revenue and the next year, we are planning to achieve Rs 150 crore of sales. This is our intended plan. We are putting in the necessary steps.

Mainly, we are opening 30 more outlets in the next 12 months. We have tied up with the departmental store Westside invited us to sell Indian Terrain as a brand in shop-in-shops through their chain. We are starting off in about 10 of their outlets and will roll it out in over the next 24 months in their other outlets too.

In terms of reach of distribution, we already have a pipeline which will take us to achieve our target of Rs 150 crore of revenue. In this whole thing the supply chain is critical as celebrities are there to assist in the supply chain inside. We will manage both the promise and the execution.

Q: What would your market cap be? We don't have your equity base post the relisting at Rs 73.

A: With Rs 73, the market cap would be around Rs 35 crore.

Q: What kind of margins does Indian Terrain function at versus Celebrity Fashions? How much of an impact do you expect to see due of the 10% excise duty hike on branded wear?

A: We are operating on gross margins of about 40-45%. The excise duty is certainly a factor which we are still considering and are yet to arrive at its impact. Our end prices to the customer may be up by about 3.5-4%. It is still in the works, but there will be about a 4% impact on the pricing.