High Street Essentials with Brands Indya, Faballey Aims for Strong Growth,Expansion Plans & IPO
24 May 2023, Mumbai
Gross Sales and Profit Targets: High Street Essentials, the parent company of brands like Faballey and Indya, achieved gross sales of Rs 240 crore in the previous financial year and aims to reach Rs 330 crore for FY24. The company has achieved breakeven at the EBITDA level this quarter and is targeting a 3-4% profit at the PAT level for FY24.
Growth Projection and IPO Plans: The company witnessed a 60% growth in business for FY23 and aims to achieve another 60% growth for FY24. Additionally, High Street Essentials plans to go public through an IPO in the next 3-4 years and has started preparing internally in terms of revenue metrics, EBITDA, profitability, and working capital.
Brand Revenue Distribution: Currently, Indya contributes 65% of the company's revenue, while Faballey contributes the remaining 35%. For Indya, 55% of revenue comes from online channels and 45% from offline, whereas for Faballey, 60% of revenue comes from offline channels and 40% from online.
Expansion Plans: High Street Essentials plans to open 10 large-format stores of Indya Luxe, spanning 2,000 sq ft each, in metro cities like Bengaluru, Delhi, and Hyderabad. The company also aims to increase the number of exclusive brand outlets (EBOs) for Indya from 26 to 36 in the current financial year. For Faballey, the focus is on expanding the brand via direct-to-consumer (D2C) channels and marketplaces.
Designer Collaborations and International Expansion: Indya plans to collaborate with renowned designers such as Varun Bahl, Ashish Soni, and Samant Chauhan to introduce their pret line, offering products priced between Rs 4,000 and Rs 8,000. High Street Essentials aims to have 12-15 EBOs in international markets and targets 35% of its revenue from international business in FY24. The company already has a presence in the US, UK, Canada, Nepal, Malaysia, and plans to open stores in the UAE and London.
Franchise Route for International EBOs: High Street Essentials plans to establish EBOs in international markets through the franchise route, with an average store size of around 1,000 sq ft. The company aims to expand its international footprint and strengthen its D2C presence in key markets.