To meet the increased demand for open footwears due to Covid-19 pandemic, the Indian footwear brand, Relaxo Footwears has planned an investment of Rs. 150 crore in this financial year. The mentioned amount, broadly, would be used for setting up a new manufacturing facility in Bhiwandi, Ramesh Kumar Dua, Managing Director at Relaxo Footwears quoted to PTI.
As per the PTI report, Relaxo claims that open footwears account for 80 per cent of their overall turnover. The firm also claimed that the demand for closed footwear has been affected but is expected to pick-up in the coming time due to the onset of winter. Dua also added, on their plan of increasing the product price, that they will be reviewed the pressures of the cost at December ending, after which a final decision will be drawn whether or not to increase the price of the product.
“Our first-quarter revenue was affected due to nationwide lockdown. Second-quarter onwards sales started picking up led by demand for open footwear. We are looking at achieving 90 per cent of last financial year’s turnover in the current fiscal,” he further told PTI.
Relaxo’s overall ales have reduced this year amid covid and the lockdown imposed due to it thereafter as compared to its previous financial year’s net profit. Relaxo Footwears has been one of the successful Indian brand owning popular brands such as Bahamas, Flite, Sparx, and School Mate.