Women’s denim and casualwear brand Kraus Jeans is charting an aggressive expansion plan, betting on its exclusive brand outlets (EBOs) to drive the next phase of growth, Ravi Punjabi, founder and MD, Kraus Jeans, told ETRetail.
From starting its journey in 2003 through large-format MBOs such as Shoppers Stop, the Mumbai-based brand is now strengthening its direct retail presence with a focus on company-owned, company-operated (COCO) stores.
“We’ve opened eight new stores in the last quarter, taking our total to 22 operational EBOs, and we intend to maintain that pace every quarter,” he said.
“Out of these, 19 are COCO stores and only three are COFO, because we want operational control and consistent brand experience,” he further added.
The outlets of the brand average 600 sq. ft., with an investment of around Rs 30 lakh per store, including the cost of goods.
Apart from this, the brand currently retails through 1,300 MBO counters across formats like Pantaloons, Lifestyle, and Shoppers Stop, where it has expanded its footprint from 60–80 sq. ft. initially to about 150–200 sq. ft. today, as the product portfolio has evolved from denim to a full-fledged casualwear offering.
“While we started as a bottomwear brand, we’ve now diversified into topwear and aim to become a complete casualwear label for women,” he added.
The brand’s direct retail strategy is already yielding results as 19 of the 22 stores are profitable, typically achieving breakeven within 18–20 months.
It plans to open 15–16 more EBOs by the end of this fiscal year, funded entirely through internal accruals, as the brand remains net debt-free.
In FY25, the brand reported a combined revenue of Rs 206 crore (including its older and new entities) and is targeting Rs 260 crore by FY26.
“Our EBITDA stood at around 17–18 per cent last fiscal, and we expect it to rise to 18–19 per cent this year. All our profits are reinvested into expanding our retail footprint and scaling production,” he asserted.
Currently, the brand is focusing its EBO rollout in metros and tier 1 cities, primarily within malls where it already has a presence through MBOs.
A strategic equity investment from Kewal Kiran Clothing Ltd. (KKCL), a listed apparel firm, is expected to help Kraus tap tier 2 and tier 3 cities in the next phase.
“In the next two years, we aim to cover most of the premium malls across major cities. After that, we’ll leverage KKCL’s network to expand into smaller towns,” he stated.
On the international front, the brand has partnered with Lulu Group to supply to its stores across the GCC region, currently servicing 30 outlets and planning to reach 60 stores within the next 18 months.
Encouraged by the response, the brand is also evaluating the launch of its own EBOs in the GCC market. By the end of FY26, the company expects its international business to contribute 2–3 per cent of total revenue.
Domestically, it remains 95 per cent offline, though it is actively exploring opportunities in quick commerce.
“We’re in talks with a few platforms, including Myntra for its MNow model, to see how quick commerce can fit into our product and pricing strategy,” he stated.
Across its channels, the brand’s product mix varies with 70 per cent bottomwear and 30 per cent topwear in large-format stores, while its EBOs reflect a more balanced 55:45 ratio.
