Apparel brand Cantabil expects annual Rs 1000 cr revenue in next 3 years

Company plans to have 540 store by this year's end to consolidate itself in smaller cities

Apparel manufacturer Cantabil aims to earn Rs 1,000 crore as revenue by 2025, betting on expenditure and new stores in small cities.

Cantabil Retail India, as the Delhi-based company is known formally, recorded a compounded annual growth rate (CAGR) of around 25 per cent for the last one year. Revenue is expected to grow 40-45 per cent in 2023 compared to last year, said Deepak Bansal, the company’s director.

The company reported a net profit of around Rs 27 crore in the third quarter of financial year 2023 (Q3 FY23), rising 13 per cent year-on-year.

Cantabil plans to open 80-90 stores every year and will have 540 of them by this year’s end to consolidate itself in smaller cities.

“We have a very strong presence across the length and breadth of the country and we aim to aggressively expand our retail presence further. For the next year, the company is planning to invest around Rs 25-30 crore to open 85 outlets in 2023, mainly in tier II, III & IV towns,” Bansal said.

Bansal said consumers in smaller cities aspire for branded clothing and good offline shopping, allowing the company opportunity in untapped markets.

As a result of Cantabil’s offline presence, these towns delivered sales that exceeded our expectations. Around 70 per cent of our stores are in such cities. So far, these cities account for 65 per cent of overall revenue, he added.

As part of its retail expansion strategy, Cantabil has opened 19 retail stores during the quarter ended December in different states including J&K, Maharashtra, Punjab, Uttar Pradesh, Nagaland, Gujarat, Himachal Pradesh, Madhya Pradesh, Rajasthan, and Haryana.

For the new retail stores, it is focusing on West Bengal, Bihar, Jharkhand, Bihar, Gujarat, Uttar Pradesh, Madhya Pradesh, and several of the North Eastern states.