Dollar Industries Expects 15-18% Revenue Growth This Fiscal Year
Knitwear maker Dollar Industries Ltd expects 15-18% revenue growth in the current fiscal year, supported by higher demand, especially for its budget product line. The company had reported a seven percent revenue growth to 1,037 crore yen in FY21, compared to 969 crore yen in FY20.
The company operates in the economy, premium and premium segments in its range of knitwear, from basic to outerwear.
According to Vinod Kumar Gupta, Managing Director of Dollar Industries, the economy line represents nearly 42% of its total sales. The company hopes to double its sales to 2,000 crore yen in the next three to four years.
“We have developed a business plan and we are on the path to growth. We expect to be able to reach the target (of 2,000 crore) by 2025, ”Gupta said. Activity area.
The company had grown nearly 52% in revenue to 391 crore for the quarter ended Sept. 30, 2021, up from 258 crore in the same period last year. The operating profit margin improved to 15.87 percent (13.80 percent) while the net profit margin improved to 10.56 percent (8.65 percent) during the quarter .
Dollar, which launched the first Exclusive Branded Point of Sale (EBO) in Ayodhya this year, plans to launch similar outlets across India. It plans to add 10 more outlets in Rajasthan and Uttar Pradesh by this fiscal year.
“We will continue to focus on increasing our reach and our range at the retail level to continue to grow,” he said.
Raw material prices have increased over the past two months, and the company recently proceeded with a price hike of around 12% across all categories. Since the prices have increased, the demand for economical products has been on the rise.
The company will wait and observe the market reaction to the price increase before making a decision on a further price increase.
“We will wait to see the reaction of the market, we do not plan to increase prices yet,” he said.
Jt adventure with Pepe Jeans
Pepe Jeans, who formed a 50/50 joint venture with Dollar Industries in India in 2017, recently decided to exit his joint venture. He had offered Dollar to buy back all of its stake in accordance with the clause relating to the right of first offer. (ROFO) in said joint venture agreement.
Dollar, in exercising its rights under the joint venture agreement, however waived ROFO and accepted the transfer of shares held by Pepe in Pepe Jeans Innerfashion in favor of GOAT Brand Labs (GOAT) incorporated in Singapore.
“We named GOAT because of their expertise in the digital space. As part of the joint venture with GOAT, we hope to increase our brand sales to ₹ 100 crore compared to the current ₹ 70 crore (in FY-21), ”he said.