Indian Silk House Agencies is eyeing Rs 500 crore in the next two years and Rs 1,000 crore in the next five years, driven by rapid offline expansion, strong store-level profitability, and a sharper omnichannel strategy, Darshan Dudhoria, CEO, Indian Silk House Agencies, told ETRetail.
The mid-segment sari retailer, with an ASP of around Rs 4,500, has been growing at a 55–60 per cent CAGR for the past four years and aims to maintain this pace for the next four years.
“We currently operate 57 stores across 12 states, with seven more in their final stages of interior work. In the next month, we move to 64 stores across 13 states, and by December, we should be present in 15 states,” he said.
Over the last 720 days, the brand has opened one store every 14 days, and is now pushing to halve that pace.
“Our target is to open one store every seven days,” he asserted.
At present, all stores follow a company-operated model supported by an investor-funded structure, and going ahead, the brand plans to shift to the COCO model.
“Every store reaches break-even in 2–3 years, and we maintain a healthy 15–20 per cent EBITDA, which we want to take up to 25%,” he stated.
To reach 400 stores in the next five years, the company is expanding its backend infrastructure through an asset-light approach.
“A 10,000 sq. ft. warehouse allows us to support nearly 30 stores. As we grow, we will lease plug-and-play warehouses across regions to maintain speed and capital efficiency,” he explained.
The brand already manages its nationwide operations through a 35,000 sq. ft. central warehouse linked to 62 weaving clusters.
The brand continues to focus heavily on Tier 2, 3, and 4 markets.
“Our mantra is to make saris accessible to everyone in India. Tier 1 can wait; we will go back when the time is right,” he said.
Currently, 35 per cent of the brand’s revenue comes from central, west, and north India, and the company expects this share to cross 50 per cent as its expansions kick in.
At present, e-commerce contributes around 10 per cent, but the brand is building aggressively toward omnichannel dominance.
“We’re taking this 10 per cent to 25 per cent within a year. Endless aisles are rolling out in all stores next month,” he shared.
“We’re acting very smart to ensure our customer acquisition cost goes really low. A large portion of our retail customers are also becoming online customers,” he further added.
The slow fashion brand will enter quick commerce next month, enabling deliveries within 20 minutes in major metros. With an inventory bank of 2,00,000 designs and a network of 15,000 artisans.
To fund the next wave of expansion, the brand plans to raise Rs 150 – Rs 200 crore in Series A by the end of this financial year.
“This will largely go into COCO stores as we scale faster. By March, we expect to touch at least 85 stores,” he stated.
Alongside domestic expansion, the brand is also preparing for its international debut.
“We will enter the UK and US markets and plan to open five stores in the UK over the next 3 years,” he asserted.
“We are also exploring Dubai and Singapore. Wherever the Indian diaspora is strong, we see opportunity. Our target is to open 25 international stores in the next three years,” he further added.
