Deal with menswear brand could be through Pantaloon.
Retail giant Future Group is close to picking up about 20% stake in menswear brand Turtle. The deal is expected to be closed shortly.
An industry source said this will be a win-win situation for Turtle as it will get additional shelf space on a priority basis at Future Group’s retail formats. “The Future Group has several retail businesses such as Central mall, Brand Factory, Pantaloon, Big Bazaar, etc, where Turtle can get shelf space on a priority basis. This will increase sales and eventually add value to the stake sold,” said the source.
The buzz is that the Future Group is likely to buy the stake through its flagship company, Pantaloon Retail India. Though there was no confirmation on this from the Future Group, it has been confirmed that the deal won’t be through Indivision, the private equity fund under Future Capital.
Amit Ladsaria, director, Turtle Ltd, declined comment on the deal.
In financial year 2009-10, Turtle plans to invest about Rs 7-8 crore, a jump of 20-23% over the amount invested last fiscal. The company’s thrust this fiscal will be on increasing efficiency and bottomline. At present, it has 32 exclusive outlets, 60 shop-in-shop formats and around 1,200 multi-brand outlets.
Plans are to add 12 exclusive outlets and 28 multi-brand outlets this fiscal. Turtle’s products are already available through 60 shop-in-shop formats in malls such as Central, Globus, and lifestyle stores like Shoppers Stop, Pantaloon and Lifestyle. Shop-in-shop formats and exclusive outlets contribute 20% each to sales and the rest comes from multi-brand outlets.
Turtle doesn’t have any plans to enter womenswear as the company sees enough scope in menswear, Ladsaria said. Over time, the company has decreased the share of shirts in its products basket from 70% to 60%. At the same time, it has expanded its offerings to include trousers (20-23% of its portfolio), accessories, denims, T-shirts and jackets.
Last year, Turtle increased its exports by over 100% to West Asian countries such as Bahrain, Muscat and Dubai. This fiscal, it expects exports revenues to increase by another 50%.
Shopping bag
In fiscal 2009-10, Turtle plans to invest about Rs 7-8 crore, a jump of 20-23% over the amount invested last fiscal
It has 32 exclusive outlets, 60 shop-in-shop formats and around 1,200 multi-brand outlets
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