Liberty Shoes Ltd (LSL) is merging its retailing arm Liberty Retail Revolutions Ltd (LRRL) with itself to further strengthen its retail presence, as per a release.
LRRL has more than 90 exclusive retail showrooms which run separate from the franchisee-run outlets under licence from LSL. The wholly owned subsidiary clocked a turnover of Rs 90 crore in the year ended March 31, 2014. It also houses a small manufacturing unit at Karnal.
“With this merger, LSL expects to hit over Rs 500 crore (in revenues) and achieve a further growth of 25 per cent,” said Anupam Bansal, director retail, Liberty Group.
With this merger LSL will have 500 exclusive showrooms, inclusive of franchisee-run shops. It said the merger will help it improve operational cost by 2-3 per cent.
Liberty Group produces more than 50,000 pairs a day, with a worldwide network of 150 distributors, and more than 6,000 multi-brand outlets.
It ended FY13 with consolidated revenues of Rs 365 crore with Rs 5.4 crore net profit.
Liberty scrip closed at Rs 150.95, down 0.79 per cent on BSE in a weak Mumbai market on Friday.
(Edited by Joby Puthuparampil Johnson)