This story is from August 17, 2005

Fabindia to expand in India and overseas

Namrata Singh / TNN / Aug 17, 2005, 00:57 IST

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Cashing in on the retail boom in the country, Fabindia, the popular brand of handloom textiles, has chalked out an expansion plan.

Fabindia to expand in India and overseas

MUMBAI: Cashing in on the retail boom in the country, Fabindia, the popular brand of handloom textiles, has chalked out an expansion plan, not only for the domestic market but overseas too.
Fabindia, which sources its products from over 7,500 craftsmen and artisans across the country, plans to set up 10-12 outlets over the next 2-3 years. The firm currently has a turnover of around Rs 120 crore a year from their 29 existing stores.
Nine stores were opened across India this year and plans are afoot to maintain this pace of expansion.
Established in 1960 by John Bissell, a buyer for Macy's New York, Fabindia began as a wholesale export house. It eventually became a successful retail business, making it one of the oldest among a cluster of new retail brands that mushroomed in the last decade.

The success that Fabindia has enjoyed has been due to their focus over the years, their marketing shifting from exports to the local Indian retail market.
According to a company spokesperson, Fabindia has several modules for the stores on which the investments, return on capital and profitability are being based. "The current turnover is Rs 9-10 crore per month and likely to rise with the addition of new stores," he said.

While global plans are at a preliminary stage, Fab has already setup shop in Dubai. "This (global) is an area we are looking at with specific reference to the regions with a high concentration of Indian Diaspora," said the spokesperson.
It launched its webstore for online sales last month, which caters to the American market. But it plans to provide this facility for its buyers in Europe, UK, countries in the East soon. There is a possibility that Fabindia might change its stance on advertising as it enters the global markets. As a policy, it does not advertise for promoting its brand or store, as it believes that its product range will speak for itself given that the brand identity is very distinct.
Fabindia continues its drive to revive traditional craft in India, a natural outcome of their commitment to the crafts sector.

About the Author

Namrata Singh

Namrata Singh is editor - business trends at The Times of India, Mumbai. She specialises in sectors like fast-moving consumer goods (FMCG), consumer durables, retail and the green economy. She closely tracks corporate groups like the Birlas, in addition to stories on consumer trends.

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