Sreeleathers firms up expansion plans for South India

NEW DELHI: In a bid to replicate its success in newer markets, homegrown footwear and leather accessories brand Sreeleathers Ltd has firmed up aggressive expansion plans. The Jamshedpur-based company, which has a well-established presence in the East and the North, will now focus on exploiting demand in South India through exclusive stores -- both company- owned and franchisees --- for its next phase of growth.

“We started our operations in Chennai back in 2012. However, it took us five years to understand the market. Today, we have been able to achieve five per cent of the market share. To grow from here is a different story, but we are aggressively pursuing our expansion plans in the South,” said Sushanto Dey, partner, Sreeleathers. The company also plans to strengthen its footprint in the tier 2 cities and beyond.

Like any other business, the outbreak of the Covid-19 and the subsequent lockdowns have had a significant impact on sales, and Dey believes it would take nearly 1.5 years for Sreeleathers to go back to the pre-Covid level. “After nil sales in April, we are now doing just about 10 per cent. That said, we believe the working capital crunch will be short term and demand will revive in the next few months,” he said, hoping the festive season will bring some cheers. On the product pipeline, the company said that the pandemic-led disruptions have delayed new launches and fresh products will now come only next year. However, it has accelerated plans to tap the e-commerce segment. As part of a pilot project, the group has also recently carved out a separate entity -- House of SL -- for its premium range of products.

Dey is a third-generation entrepreneur at the Sreeleathers group, which was founded by Suresh Chandra Dey right after India's independence in 1952, when leather footwear was seen as a luxury, and the retail industry didn’t cater to the middle class population in India. 

Currently, the group has 40 retail outlets across the country. Though the company continues to get a number of requests for dealerships and franchises, it prefers a ‘conservative’ approach, Dey pointed out. “We are an organically developing brand. Our selection process is very rigid. We look at opening only big format stores, onboard like-minded partners who believe our goals of offering value for money products. Besides, we are a debt-free company and we expect our franchisee to own their stores. These are some of the reasons that makes us distinctly different from competition and has also helped us in maintaining profitability at all stores,” Dey explained. 

The 140-crore brand, which competes with the likes of Bata India, Khadims, Liberty Shoes, Mochi Shoes, among others, is looking at opening some 10-15 stores over the next decade.