Source: Economic Times, 11 October 2022
New Delhi: Health and wellness firm IndiaShoppe expects to touch Rs 1,500 crore in revenue by the end of the current fiscal FY23, said Mitesh Bhandari, co-founder and CFO of the company during an interaction with ETRetail.
Its revenue stood at Rs 1,200 crore in the previous fiscal FY22. The company said its revenue grew 22 per cent in 2022 as compared to 2020.
Bhandari said there was a significant shift in consumer preference post the Covid- 19 pandemic. Consumers have started accepting more ayurvedic products, so their sales figures have increased, he added.
Almost 95 per cent of its sales come from its offline channels and the remaining 5 per cent is contributed from online channels. On this, he said the company’s strong customer base in the semi-urban belts is a big factor for such a stark difference in contributions.
On expansion plans, the direct-to-consumer (D2C) Ayurveda-based firm said it is eyeing expansion in the scale of operations and setting up more distribution centres to ensure easy reach and faster delivery.
It has opened 77 new pick-up centres this year across the country. Currently, the company has 50 stores and 655 pick-up centres in 27 states. It aims to serve the growing demand for ayurveda-based wellness products in smaller cities such as Jaipur, Baroda, Nasik, Madurai, Guwahati and others.
Further, the company said it will open more stores and invest in new product lines and technology. Also, it has plans to expand in neighbouring countries.
Sharing about the capital expenditure (CAPEX) plans of the company, Bhandari said they spend on research and development (R&D) of new formulations and on newer categories.
As a brand, IndiaShoppe has no plans of entering manufacturing yet, he said. Also, he believes in contract manufacturing, where economies of scale benefit all. Presently, it outsources its manufacturing activities to contract manufacturers who are equipped with the production capabilities to make goods across the categories & brands.
The omnichannel retailer said its target customers include middle and lower-middle-income groups as well as an aspiring segment of society, with a focus beyond metro cities.
Currently, it offers a product range in agriculture, beauty, lifestyle, health and wellness segments. Now, it is expanding its product portfolio with a sanitary pad range, mouthwash, head-balm, shoe-shiner and more.
