Liberty Shoes merges subsidiary, expands retail presence
04 April 2014
Liberty Shoes Ltd has announced the merger of its subsidiary Liberty Retail Revolutions Ltd with itself in a bid to achieve synergy in manufacturing and expand its retail presence.
The company said the move will result in Liberty Retail Revolutions meeting the best retail practices.
The company is eyeing a turnover of Rs500 crore this year, a 40 per cent increase compared with Rs350 crore turnover achieved in the previous year.
"We have merged Liberty Retail with Liberty shoes to make the company a lot more viable for investors and to increase operational efficiencies. We are looking at clocking Rs500 crore turnover this fiscal," said Anupam Bansal, Liberty group's director for retail business.
Liberty Revolutions has 90 exclusive retail showrooms. The company had clocked an annual turnover of Rs90 crore in 2013-14.
With this merger Liberty Shoes will have 500 exclusive showrooms.
With greater integration, financial strength, cost savings in terms of economies of scale, more focused operational efforts, Liberty Shoes expects to hit revenues of over Rs500 crore and achieve a growth rate of 25 per cent.
It will also reduce costs in areas such as inventory, procurement, administrative cost and HR cost, according to Bansal.