by Apparel Resources News-Desk
05-August-2019 | 2 mins read
In India where there has hardly been any chain store retailer with its own manufacturing unit, VR Retail is all set to start its own state-of-the-art manufacturing unit.
Having around 78 stores across 17 states in India, V2 Retail will soon start a factory with 1,000 machines in Noida, which is supposed to start production in next 3 months. The factory is currently under construction.
The factory will cater to around 10 per cent of the retailer’s requirement. Once the factory is set up according to company plans, there could be further expansion on the manufacturing front.
The company sources informed Apparel Resources on the request of anonymity, “We want to reduce our costing without compromising on quality at all and that is possible when we have our own manufacturing unit. It will help us reduce our garment cost by around 20 per cent.”
The concerned person further added that initially, the company shall start manufacturing shirts and trousers, and later complicated products like jackets can also be planned. Cutting and finishing will be near the warehouse of the company which is situated close to Gurgaon. The top team for the factory, including the factory head and the HR head, have been recruited. “We have finalised Noida to set up the factory, as it is comparatively cost-effective and labour availability is also there,” the person stated.
Currently, it buys 95 per cent of its apparels from other manufacturers and the rest 5 per cent is allocated to jobwork providing own fabrics and trims to the jobworkers.
Under the leadership of Ram Chandra Agarwal, CMD of the company, V2 retail is one of the most successful retailers of India. Net profit of the company rose by 1.96 per cent to Rs. 11.45 crore in the quarter ended June 2019 as against Rs. 11.23 crore during the previous quarter ended June 2018.
Sales rose 7.78 per cent to Rs. 202.35 crore in the quarter ended June 2019 as against Rs. 187.75 crore during the previous quarter ended June 2018.
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