Ethos scouting for investors to spread retail

Premium watch retailer Ethos Swiss Watch Studios is

in talks with PE investors and high networth Indian to get funds so that it could invest Rs 30-40 crores into its retail expansion plans over the next two-three years. Ethos is a subsidiary of watch component manufacturer KDDL (formerly Kamala Dials and Devices) operating a chain of multi-brand stores in the luxury and premium watch segments. The company runs a chain of 34 Ethos stores and now plans to add 8-10 stores every year. The company’s marketing plans include strengthening its marketing and merchandising activities.

Currently, Ethos retails close to 40 premium brands of watches such as Breguet, Omega, Rolex, Longines and Tag Heuer priced between Rs 5,000 and Rs 3 lakh. The retailing business of KDDL has been posting 40 per cent year on year growth and is at a breakeven stage. And building on the current growth record, the company is now aiming to be a Rs 500-crores business in three years. Last fiscal, revenues from retailing stood at Rs 140 crores, while the company’s manufacturing segment contributed about Rs 100 crores.

KDDL has watch making units in Parwanoo (Himachal Pradesh), Derabassi (Chandigargh), Bangalore, Baddi and in Switzerland. The company manufactures dials and watch parts for domestic and international markets such as China, Hong Kong and Switzerland. The manufacturing business of KDDL is growing at 20 per cent annually. KDDL is currently the largest supplier of watch dials and hands for Titan, Timex and Fossil in India.