Bella Casa Plans Rs 65 Crore Investment In Capex

Company Performance

Bella Casa Plans Rs 65 Crore Investment In Capex

Company’s annual production capacity now stands at Rs 500 crore
Expansion of two existing plants, adding one new facility, bringing in employment opportunities for additional 1000 people
Manufacturing capacity - 12 million units per annum

Jaipur-based leading player in the fashion and retail industry, Bella Casa, has announced the commencement of a series of business expansion plans for 2021 with a total investment of Rs 65 crore. The entire investment plan will be funded by the company through its internal accruals only. With a 550,000 sq. ft. manufacturing facility in Jaipur, the company has doubled its production from 6 million units to 12 million units per annum. The company is now in the process of establishing its third plant, creating employment opportunities for additional 1000 people. Today, the company holds a robust Rs 500 crore capacity for producing both apparels and home furnishings. In 2020, as the COVID-19 pandemic struck, the company quickly began to revamp its operations in order to sustain itself through tough times. As a campus thriving with 2500 people churning out 20,000 units a day and a major expansion programme in progress came to a screeching halt, the company pivoted strategies, gauging the market need. With the urge to help the community as well as keep up the business continuum, Bella Casa reached out to state hospitals and state health departments offering support through production of essentials. By April 2020, a part of the factory was reopened and Bella Casa produced bedsheets, pillow covers, PPE kits and face masks for supply in Rajasthan, Gujarat, Punjab, Jharkhand, and West Bengal. Expressing gratitude for an unhindered growth at a time when most businesses were struggling to survive, Saurav Gupta, CEO, Bella Casa says, "We have been consistent with our capex for the last 10 years. Even this year when Covid struck, we are grateful to be expanding the capacity and taking the total capacity to 1 million units per month (from 500,000 units/month in FY20). While adding the production capacity, we are equally optimistic with our distribution and are now taking our brand to 400+ districts from 300+ districts at present." "We have also devoted great efforts in innovative marketing along with offering top quality products to our customers. We recently onboarded Shraddha Kapoor as our brand ambassador and are in process of executing many innovative marketing plans for the growth of the brand." The company announced its quarterly results in January 2021 stating it to be the best third quarter for the company since its inception. 3QFY21 consolidated constant currency sales increased by 39% YOY to Rs 53.68 crore and consolidated net profit and EPS (without exceptional items) increased by 69% YOY to Rs 4.01 crore and Rs 3.5 per share, respectively. Going forward, as the market conditions improve further, the company plans to focus on its new product launches and enhanced distribution to build on the growth momentum. Overall, the company is relentlessly focused on becoming more agile, increasing the pace of innovations, enhancing their go-to-market approach, and will continue to outperform the market and deliver industry-leading returns. Bella Casa Fashion & Retail Ltd (BCFRL) is one of India’s largest manufacturers and distributors of chic home textile products and designer ethnic wear. The Jaipur based company has been in the business since the ‘90s and with consistent effort, has now become a household name with its superior quality products. Bella Casa has a varied product line, including bed sheets, quilts, and dohars in the bed linen category under ‘Bella Casa - Home Furnishings; and trendy Indian wear for men under the brand ‘Nayak’ and women under the brand ‘Indigo’ - in its apparel category. “Bella Casa” has a network of 80 authorised dealers/wholesalers and reaches out to around 3000 retailers across the country. The company also has a robust online presence through its platform - www.bellacasa.in and associations with e-commerce companies like Flipkart, Amazon and Ajio.