The company is aiming to go public. Fabindia intends to expand into the international market of 'non-diaspora' by creating a new product portfolio, according to an official in the top ranks.

In India, in the United States, the Indian retail chain plans to expand its physical retail network across the globe, expanding its direct-to-customer sales.

In an interview with BusinessLine, Viney Singh, Director of Fabindia Limited, Fabindia Limited, said there was a "steady progression" in the retail sales of its stores in the world.

At the time of writing, on September 30, 2021, Fabindia had 309 retail stores, which included 11 retail stores outside of India. Additionally, 'Fabindia' and Organic India's products are distributed and sold across 55 countries via online channels and exports.

Growth in revenue

In FY19 and FY20, FY21, and the six months that ended on September 30, 2021, the company's revenues from operations from outside India were Rs10.58 million, Rs10.35 crore, Rs7.2 crore, as well as Rs4.4 crore, which is 0.94 percent, 0.91 percent, 1.24 percent, and 1.29 percent respectively of the company's total revenues from operations during these periods.

"For Organic India, international markets contributed to approximately 55.61 per cent and 54.34 per cent of sales in FY21 and in the six months ended September 30, 2021, respectively, and will continue to remain the focus areas," Singh stated.

"When you go to non-diaspora markets, the product portfolio needs to be changed...you need to build on the western wear portfolio, you have to study customer behavior in those countries and tailor your products to cater to that aesthetic...this works across all categories, particularly in the apparel and home segments."

In a discussion about the market in the country, He said that Fabindia is planning to expand its physical retail presence in markets that are both new and established. "Fabindia seeks to expand its geographical footprint," the CEO stated.

"Around 55 percent of Fabindia's stores are located in Metros or mini-metros. The rest are in Tier-1 cities, 2, and 3. Therefore, our revenues are primarily within the store's area.

"We have seen a tremendous growth across metros as well as cities in tier-1, 2 and 3. The increase seen in the tier-2 and tier-3 cities is indicative of the greater potential for expansion across the country. With a particular focus on the franchisee models, Fabindia intends to grow into cities like these." the CEO said.

In the last two years, the business has also seen an enormous increase in sales through its online channels. The company's online sales were Rs45.81 million, Rs67.65 crore, Rs93.17 crore, and Rs61.15 crore (on an individual basis) in FY19, FY20, and FY21, and during the six months ending September 30, 2021. As a result, it is 4.09 percent, 5.95 percent, 16.00 percent, 17.75 percent, and 17.75 percent, respectively, of the total revenues generated by sales.

"The introduction and growth of 'online retail' has made online shopping a material part of our growth strategy, and we believe that increasing presence of online-retailers and e-commerce platforms in India and internationally will have a significant impact on our business going forward," Singh stated.

Fabindia plans to keep integrating digital and physical capabilities to build a seamless, connected omnichannel ecosystem.

"Over the decades, FabIndia has managed to establish a long-term partnership with wealthy shoppers because of its high-end product positioning. In order to reach out to the millennials and Gen-Z, Fabindia has launched an entirely new line of clothing named FabNu," Singh said.

Fabindia plans to expand its lifestyle products, including fusion wear and accessories, to appeal to a younger crowd.

"We plan to add new products which are contemporary, fit for everyday use, and are more affordable in order to target new customer categories such as young adult women," Singh stated.