New Delhi: Health and wellness company IndiaShoppe expects to hit Rs 1,500 crore in revenue by the end of the current FY23, said Mitesh Bhandari, co-founder and chief financial officer of company when interacting with ETRetail.
Its revenue stood at Rs 1,200 crore in the previous fiscal year 22. The company said its revenue increased by 22% in 2022 compared to 2020.
Bhandari said there had been a significant shift in consumer preferences after the Covid-19 pandemic. Consumers have started accepting more Ayurvedic products, so their sales figures have increased, he added.
Nearly 95% of its sales come from its offline channels and the remaining 5% comes from online channels. In this regard, he said that the company’s strong customer base in the semi-urban belts is a significant factor for such a difference in contributions.
Regarding expansion plans, the direct-to-consumer (D2C) Ayurveda-based company said it is considering expanding the scale of operations and setting up more distribution centers to ensure easy reach and faster delivery.
It opened 77 new pickup centers this year across the country. Currently, the company has 50 stores and 655 pickup centers in 27 states. It aims to meet the growing demand for Ayurveda-based wellness products in smaller cities such as Jaipur, Baroda, Nasik, Madurai, Guwahati and others.
Additionally, the company said it will open more stores and invest in new product lines and technologies. In addition, it plans to expand into neighboring countries.
Talking about the capital expenditure plans (CAPEX) of the company, Bhandari said that they are spending on research and development (R&D) of new formulations and new categories.
As a brand, IndiaShoppe has no plans to enter manufacturing yet, he said. In addition, he believes in contract manufacturing, where economies of scale benefit everyone. Currently, it outsources its manufacturing activities to contract manufacturers who are equipped with the production capabilities to manufacture goods in all categories and brands.
The omnichannel retailer said its target customers include middle and lower middle income groups as well as an aspiring segment of society, with a focus beyond metropolitan cities.
Currently, it offers a range of products in the agriculture, beauty, lifestyle, health and wellness segments. Today, it is expanding its product portfolio with a range of sanitary napkins, mouthwashes, head balm, shoe shiner and more.