Croma eyes Rs 250cr revenues from private labels in FY13
Riding high on the growing demand for its private labels, Infiniti Retail, that operates a chain of multi-brand electronics stores under 'Croma', eyes revenues of Rs 250 crore from its own brands and expects to breakeven in the current fiscal.
April 30, 2012 / 09:40 IST
Riding high on the growing demand for its private labels, Infiniti Retail, that operates a chain of multi-brand electronics stores under 'Croma', eyes revenues of Rs 250 crore from its own brands and expects to breakeven in the current fiscal.
"We treat our private labels as brands and we sell what our customers want. We are expecting Rs 250-crore revenues from our private labels in this fiscal," Infiniti Retail Managing Director and CEO Ajit Joshi told PTI.The Tata Group firm clocked Rs 80-crore revenue in 2010-11 and Rs 130 crore in FY12 from its private labels. "We are very strict with our private labels, if the product does not deliver, we will throw it off the shelves. But, we have observed that our private labels are well accepted in the market," Joshi said. Under the Croma brand, the firm sells refrigerators, air-conditioners, washing machines, fans, vaccum cleaners, hair dryers, among others. "Our air-conditioners, including split and window, have registered a penetration of nearly, 44-50%. Similarly, the penetration of Croma vaccum cleaners and microwaves is 61% and 20%, respectively. This has given us confidence to go into larger appliances," he said, adding, the company is also planning to launch front loading washing machines. Joshi said Infiniti Retail is expected to breakeven in this fiscal year. "We started this company in 2006. We expect to break even in this fiscal itself," he said. The company had a revenue of Rs 1,970 crore in FY12. Meanwhile, the company has entered into the e-commerce space by launching a portal 'cromaretail.com', which will enable it to reach 319 cities. "With the higher penetration of Internet connectivity, online sales are catching up in a big way. The e-commerce portal will help us reach deeper into cities where we do not have presence so far," he said. Joshi said Infiniti Retail is expanding its store network. "We plan to open another 14 stores by September to take the total count to 86," he said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
