Said to be in talks with a US investor
KOLKATA: Shirt manufacturer Turtle is on the lookout for a strategic investor to offload 20% equity. The company will use the proceeds to part-fund its expansion plans.
The idea is to not only garner funds but also look at an investor who would also buy in bulk from the company.
The company is reportedly in talks with a large home-grown retail chain or a US-based investor. Amit Ladsaria, director, Turtle, told DNA Money: “I cannot comment on this.”
The company will require about Rs 14 crore in 2008-09, of which about Rs 6 crore will fund its retail expansion plans while the rest will feed its working capital requirements.
Apart from a stake sale, the company is looking at a debt component for raising this quantum.
Turtle is now also eying Fiji Islands and Saudi Arabia. The brand already has a presence in Dubai.
“A large retailer in Fiji has shown interest in the brand. There is no strategic reason for looking at the Fiji market otherwise,” Ladsaria said. The aim is to make the overseas business contribute 10% to turnover in 2008-09 and 20% in three years.
Turtle forward integrated into retail in 2004 and is now present in 380 cities. However, now it is aiming at a deeper retail penetration to capture a larger slice of the Indian consumer’s mindspace.
As part of this blueprint, it is setting up marketing teams for each state to support its distribution channels. It has also tied up with lifestyle stores like Indiabulls Mega Stores, Globus, Shopers’ Stop and Pantaloons for greater visibility.
Turtle has one plant in Bangalore and three in Kolkata with a combined manufacturing capacity of 1.8 million pieces per annum. Shirts form 70% of Turtle’s product portfolio. The rest comprise trousers, T-shirts and accessories.
While accessories are outsourced and retailed only from dedicated brand outlets, trousers and T-shirts are manufactured by third-party players.
Turtle is expecting to close this fiscal with a turnover of Rs 50 crore.
