Siyaram to expand retail network in major metros

Siyaram Silk Mills, a leading producer of blended fabrics in India is planning to expand its retail network by

opening outlets in all major cities with a population of five lakh and above. Currently the company has 175 outlets, out of these 165 are run by franchisees run.

A consistent financial performance of Siyaram Silk Mills, a blended fabric and garment-manufacturer despite slow economy is attracting heightened investment interest. The company, despite high volatility in raw material prices in the last three years, has maintained its operating profit margin in the range of 12-13 percent and its net profit margin at around 5-6 percent.

Having a strong marketing network of 1 lakh retailers has positively worked in favour of the company helping it reach out to every corner of the country. Close to 80 percent of revenues are contributed from sale of fabrics, 16 percent from garments, and 4 percent from yarn. It’s portfolio of brands include names like Siyaram, J Hampstead, Oxemberg and MiStair.

In the last three years, Siyaram Silk Mills, carried out capacity expansion at capital expenditure of Rs 220 crores, by adding 200 looms and 110 machines for ready-made garments. This boosted its weaving and garment capacities by two crore meter per annum and six lakh pieces per annum, respectively.