Max to Invest 400 cr to Reach 120 Cities in 4 Yrs
New Delhi: Fashion brand Max, part of Dubai-based $9 billion Landmark Group, is looking to double its turnover to ₹ 5,000 crore in the next four years by expanding its sales network to 400 stores in 120 cities. Max Fashion will invest around ₹ 400 crore over the next four years to open new stores in tier I and II cities. It is also planning to expand its value apparel retail format ‘Easybuy’ and aiming to have a network of 180 stores by then catering tier III and tier IV towns.
“By FY20-21 we would be ₹ 5,000 crore company. This year we would close at around ₹ 2,400 crore. Last fiscal, we were at ₹ 1,800 crore,” Max Fashion India Executive Director Vasanth Kumar said. He further added: “In the next four years, we would operate 400 stores in 120 cities.”
Launched in 2004, Max Fashion is presently operating a chain of 190 stores in 75 cities.
“Every year, we would invest around ₹ 100 crore for expansion. We invest around ₹ 5 crore to open one store, of which ₹ 2.5 crore is on capex and the rest is working capital,” said Kumar. Max has added 40 new stores so far in the current fiscal and has plans to open 40 more next fiscal.
“We are growing 35 per cent per year and we would maintain this growth for the next 2-3 years,” he said.
Besides, the Landmark group is also expanding its value apparel retail format ‘Easybuy’ and aiming to have a network of 180 stores by FY20-21. “This is to cater tier III cities and below and it is operating at a price which is 40 per cent cheaper than Max. It is growing 20 to 30 stores per year now,” Kumar said.
Max has added 40 new stores so far in the current fiscal and has plans to open another 40 stores in the next fiscal