JDS Apparels to raise Rs 40 cr via placement

MUMBAI: JDS Apparels (P) Ltd has initiated the process of raising Rs 40 crore from private equity players to fund its second phase of retail expansion in the country.

The Noida-based fashion and lifestyle retailer currently operates 6 stores under the Ritu Wear brand in north India with another 10 in various stages of opening.

According to sanjay Sahni, director of JDS Apparels, the expansion of another 10 stores is expected to be accomplished by second half of 2009. “In fact, two new stores are set to open in Faridabad and Indirapuram in a couple of months from now,” said Sahni.

Ritu Wear is currently operational in Delhi and NCR (Lajpat Nagar, Rohini, Noida and Kaushambi), and Punjab (Amritsar). New stores are expected to be launched in Panipat, Meerut, Moradabad, Bareilly, Jaipur and Jalandhar.

The current expansion will be funded internally and it will be the second phase wherein the promoters will require a minimum Rs 40 crore. “Talks have been initiated already with a handful of private equity firms and we should be able to conclude the deal soon,” added Sahni.

Post first phase of expansion in north India, the promoters are targeting a turnover of Rs 400 crore. Thereafter, the expansion will target cities in Central India, followed by east and west India.

“With the retail footprint in key location across the country, we should be able to achieve a topline of Rs 1,000 crore by 2011-12,” said Sahni.