Garment retail chain Hakoba Lifestyle Ltd (HALL) is looking to induct a strategic investment partner to take its retail expansion to the next level. It could divest 15-25% in its retail subsidiary.
May divest 15-25% in the retailing venture
MUMBAI: Garment retail chain Hakoba Lifestyle Ltd (HALL) is looking to induct a strategic investment partner to take its retail expansion to the next level. It could divest 15-25% in its retail subsidiary.
The partner is also expected to help grow the brand, both in India and abroad.
Varun Sekhani, director, Hakoba Lifestyle, refrained from divulging details. However, he did indicate that private placement was an option being pursued seriously by the company.
A subsidiary of India’s largest embroidered garment, lace and accessories manufacturer Pioneer Embroideries Ltd, HALL hopes to finalise a detailed business plan by the first week of August.
“It will include the strategy for international and domestic expansion, future investment in our business and retail footprint, amongst others,” said Sekhani.
Asked about the possibility of HALL selling out the Hakoba brand, Sekhani said the company was very confident about the brand and its potential both in India and overseas and selling it out wasn’t a part of the agenda.
“Just recently, we launched 16 stores on a single day in the state of Gujarat. The target in the next 6 months or so is to add 50 more stores across the country. We have been exploring international expansion, too and should be able to announce something concrete in the coming months,” said Sekhani.
HALL currently operates a network of 66 Hakoba stores in India and envisages an investment of over Rs 75 crore to set up 250 plus stores in the domestic market in the coming years.
The management is also exploring the possibility of setting up shop-in-shops with retail biggies.
Meanwhile, it is understood to be finalising the first international franchise and the first Hakoba store overseas is likely to come up in Melbourne, Australia. Other international destinations include the UK and the US.
Pioneer Embroideries currently has seven manufacturing units across India, with a total capacity of 2 crore metres per annum. While a fairly big chunk of this goes into the domestic market, it also exports fabrics to Dubai, Nigeria, Africa and the US, among others.
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