Relaxo Footwears to set up new facility at Rs 150 cr investment this fiscal

Relaxo Footwears Ltd plans to make investments Rs 150 crore within the present fiscal to set up a new manufacturing facility amid rising demand for open footwears comparable to slippers and sandals within the backdrop of the COVID-19 pandemic. “Demand for open footwears is going up due to the COVID-19 pandemic. We are trying to increase production to meet that demand. We have planned investment of Rs 150 crore this financial year. Majority of this amount will go for setting up a new manufacturing facility in Bhiwadi,” Relaxo Footwears Managing Director Ramesh (*150*) Dua informed.

Relaxo Footwears, whose key manufacturers embody Sparx, Flite, Bahamas and School Mate, mentioned open footwears account for about 80 per cent of its complete turnover. The Delhi-based agency mentioned demand for closed footwears has been affected however it expects its pick-up going ahead due to the onset of winter. Dua mentioned Relaxo Footwears is wanting at reaching 90 per cent of final monetary 12 months’s turnover within the present fiscal.

“Our first quarter revenue was affected due to nationwide lockdown. Second quarter onwards sales started picking up led by demand for open footwears. We are looking at achieving 90 per cent of last financial year’s turnover in the current fiscal,” he added. Relaxo Footwears had reported a web revenue of Rs 226.25 crore and income from operations of Rs 2,410.48 crore within the earlier monetary 12 months.

Asked if the corporate is planning any value enhance of its merchandise, Dua mentioned: “Raw material prices are benign right now..Prices (of raw materials) are looking up from January onwards. We will review cost pressures at the end of December and take a call whether to hike prices of our products or not.” The firm has eight manufacturing items and has presence in 20 international locations and exports account for 4 per cent of its complete turnover.