Reliance Mutual Fund bought 6 lakh shares at Rs 200 a piece in Indian Terrain Ltd. on April 25, at a premium of nearly 6 percent over Monday's closing price. The stock has gained more than 5 percent since the company informed the exchanges about the deal. The apparel maker is now looking to increase its presence in the “boys wear” segment, which the company's chairman and managing director Venkatesh Rajagopal told BloombergQuint will drive future growth.
Edited transcripts.
Why has Indian Terrain been on the radar of mutual fund companies?
Reliance Mutual Funds had invested in the Qualified Institutional Placement (QIP) made by the company two years ago, and have been tracking our progress very closely. It expects Indian Terrain's performance to be better than other apparel brands.
What will drive growth going forward?
The kids' boys wear segment has done very well for Indian Terrain, posting sales of Rs 40 crore in the last 12 months. We have a revenue target of Rs 100 crore only from the boys wear segment by 2020.
What was the impact of demonetisation and is it over?
Demonetisation impacted Indian Terrain for only about three weeks. Post that our sales have been in-line with our projections and has grown 25 percent.
Do you plan to open new stores in the future?
We have a total of 140 stores at the moment. Last year, we added about 25 stores and expect to add another 90 stores over the next three years.
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