MUMBAI (Reuters) - Apparel firm Gokaldas Exports Ltd. expects domestic sales to rise to at least a tenth of revenue in 2007/08 following the retail foray by top Indian business groups, a senior official said on Monday.
The company, which counts global brands Nike, Adidas and Tommy Hilfiger among its customers, derives more than 98 percent of its annual revenue from exports.
"I am quite bullish on the Indian scene." Executive Director Rajendra Hinduja told Reuters. "We have already made some inroads. We should get reasonable numbers from the current quarter."
Gokaldas expected total sales in the year to March 2007 to reach 10 billion rupees, he said.
India's retail industry is estimated at about $300 billion and is forecast to grow to $427 billion in 2010 and $637 billion in 2015, according to consultancy Technopak Advisors.
Bulk of the growth is expected to be cornered by retail chains being set up by the Reliance group, the Tatas, Aditya Birla group and Bharti, which has tied up with Wal Mart.
Earlier on Monday Gokaldas reported a 13.5 percent rise in net profit to 178.3 million rupees in the quarter to December.
"Our growth was slightly depressed as we started four units during the period. The gestation period for them is about four months," Hinduja said." The rupee also strengthened by about 4 percent, impacting the quarter."
The company is setting up another unit in the southern state of Karnataka and expects to produce a total of 30 million pieces in 2007/08, up from 24 million now, he said.
Gokaldas shares closed up 3.8 percent at 636 rupees in a weak Mumbai market.
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