Khadim raises funds from Reliance Equity

As speculated earlier, Kolkata-based footwear

manufacturer and retailer Khadim India has raised Rs 90 crores from private equity (PE) firm Reliance Equity Advisors. The company plans to utilise these funds to finance its expansion plans apart from getting rid of the existing debt.

Khadim is looking at expanding its footprint beyond the Eastern market, which contributes around 70 percent of its total sales. After venturing into the footweat retailing in 1993, Khadim’s today has the largest number of exclsuive retail outlets after Bata and has the largest number of stores in Eastern India. The company has a network of over 600 exclusive retail stores including 112 company owned outlets. The company plans to invest at least Rs 40 crores over the next three years to add 100 company-owned stores.

During the same period, another 80 outlets will be added through the franchise model. Focus will be on expanding presence in East, South and Central India. It also reaches out to its target audience through 528 exclusive dealers across India with another 385 non-exclusive outlets. Footwear is the main business of the company and 87 percent sales come from this business.

On the product front, accessories including belts, wallets and bags contribute around 20 percent of footwear store sales, and company plans to focus on expanding this segment for Khadim. The company also plans to target the youth while focusing the middle and upper-middle class markets.