In an exclusive interview with CNBC-TV18, Adesh Gupta, Chief Executive Officer, Liberty Shoes, speaks about the company and his outlook going forward.Here is a verbatim transcript of an exclusive interview with Adesh Gupta on CNBC-TV18.
Q:I believe that you are investing quite a bit in retail distribution channels in India – can you take us through how much money is being invested and specifically for what?
A: We have very strong clients for retail side. We have company owned and company managed stores, which are about 75 in numbers as of now. The plan for the next financial year is to add about 50 more stores and this will take up the figure to 125. Then we also have franchise stores about 450 in numbers, which we also plan to take along with a growth of 20-25% to a level of 550. So this means we will put a strong effort and also put finances in the retail side so that our brand gets noticed in the domestic domain.
Q: Are you fully capitalized or you need to raise more capital for this plan?
A: We would be needing capital as working capital requirement or also maybe little bit of capex. We are looking towards almost Rs-50 crore for the next financial year to support the growth plans we have in retail.
Q: Rs 50 crore of equity capital or Rs 50 crore of debt?
A: We are looking at almost Rs 50 crore of debt going forward in the next financial year.
Q: So no equity dilution planned at all?
A: Not as of now.
Q: What is going on with the export side of the business, which is why I believe that, is now about a fifth of your revenues particularly from the German market where you seem to have a presence?
A: I think exports are looking quite positive for us. Rupee has weakened in the last more than one year more than 20% so it has been cutting edge in the Indian exports. At Liberty we have been bullish about exports and our exports are also showing positive trends particularly in German market and also in the Middle East and Gulf markets, where we have our own brand presence through our distributors and dealers and also exclusive retail outlets. So we are quite bullish about exports going forward in the next financial year to grow rapidly.
Q: You had sales of Rs 260 crore last year what do you think you will come with this year domestic retail and exports put together?
Q: You had sales of Rs 260 crore last year what do you think you will come with this year domestic retail and exports put together?
A: I see a very positive trend. I cannot put numbers as of now but I am very positive about the growth segment.
Q: By that do you mean you will report growth of Rs 260 crore, maybe take it up to Rs 300 crore this year?
A: We will definitely try our level best and we will put our best foot forward so we can reach those kinds of figures. Of coruse its not so easy but we will definitely try our best.
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