Toonz Retail looking at breakeven in current fiscal

Toonz Retail looking at breakeven in current fiscal

Kids retailer Toonz Retail has set an ambitious target of breaking even in the current fiscal, in the fourth year of its operations, having reached a decent scale of operations at the retail level.

“We are eyeing breakeven in the current financial year and eyeing a turnover of Rs 40 crore this year,” Toonz Retail CEO Sharad Venkta said.

In the next three years, the company plans to achieve turnover of Rs 100 crore, Venkta added.

The promoters have invested Rs 40 crore so far in the business and are planning to invest another Rs 20 crore for its retail expansion plans.

“Currently, we have 55 stores spread across 12 states in the country. We are eyeing 75 stores by March 31, 2015 and planning to open 200 stores in the next 3 years,” Venkta said.

We plan to invest another Rs 20 crore towards our retail expansion plans across the country, he added.

The company, whose expansion plans are currently funded fully by the promoters and internal accruals, is now looking at the option of bringing in a outside player including private equity players or a strategic investor for its expansion plans.

“We had not explored options for a stake sale till now as we had funding from inherent sources. We will start talks now for a stake sale now that we have the scale,” Venkta said.

The runaway success of online retailing in India has caught the eye of Toonz as well and the company is planning to get into online retailing of its products through its own website soon. It is also looking at expanding its product range by introducing its own brand in the baby nursery space.

“We are working on our own website, which we expect to be fully functional over the next 6 months. We expect sales of Rs 10 crore through the online channel in the next financial year,” Venkta said, adding, “We are evaluating options for introducing our own brand in baby nursery space.

 It will take some time and we expect to roll it out in the next 6 months to 1 year. The trial runs for the product are already on currently.”

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