Garment maker Dollar Industries Ltd. expects to improve margins by 100 basis points to 13.5 percent by March-end. The reason: a shift in focus towards the premium segment from innerwear and women’s apparel.
“We are focusing on making premium products at affordable rates,” Ankit Gupta, vice president of Dollar Industries, told BloombergQuint in an interaction. He expects to maintain healthy profitability as the input cost is relatively lower than the selling price for the segment.
The company’s recent joint venture with Pepe Jeans is a move towards expanding its presence in the premium market segment, he said. The premium segment contributed nearly 21 percent to the company’s revenue mix as of March, 2018.
Here are some other key highlights from the conversation:
- Sales mix would change going ahead, with premiumisation being dominant.
- Aspire to grow at 15 percent at compounded annual rate over the next five years on the revenue front.
- In talks with chief executive officers of a few companies for potential acquisitions.
- Force NXT and Missy are the new brands aimed at premiumisation.
Watch the full interview here: