Dollar Industries bullish on South market; Ropes in Mahesh Babu as brand ambassador

As a part of the Vision South India strategy, Dollar Industries is targeting around 50% growth in sales from Southern market as compared to current year.

By  Storyboard18Jun 15, 2024 12:15 PM
Dollar Industries bullish on South market; Ropes in Mahesh Babu as brand ambassador
Dollar Industries recently signed actor Mahesh Babu as its brand ambassador for South India. Meanwhile Bollywood superstar Akshay Kumar, endorsing Dollar Man, is associated with Dollar as the brand ambassador for over 14 years. Actress Yami Gautam is the brand ambassador for Dollar Women i.e Missy and Actor, Saif Ali Khan is the brand ambassador for Dollar Always. (Image source: News18)

Dollar Industries Limited, a leading lifestyle outerwear and innerwear business in India, has doubled down on its vision for the South Indian markets. The company recently signed actor Mahesh Babu as its brand ambassador for South India.

The company was established in 1972 as Bhawani Textiles, under the leadership of Din Dayal Gupta. Today Dollar Industries Limited has 15% market share of the branded hosiery segment in India and the Group is targeting a growth of 11% - 12% at on a year-on-year basis. As a part of the Vision South India strategy, Dollar Industries is targeting around 50% growth in sales from Southern market as compared to current year.

“We have received a good response for our products from the Southern markets and consumers have accepted our quality products at affordable prices from the house of Dollar. The acceptance here is evident from our sales growth in these markets. Our domestic sales have recently increased from these markets and stands at around 8%. With Mahesh Babu now being our Brand Ambassador for southern market, it will act as a catalyst to boost our brand prominence and sales even more. We are extremely bullish and targeting to garner around 20% of our domestic revenue from South market”, said Vinod Kumar Gupta, Managing Director, Dollar Industries Ltd.

Dollar Industries is experiencing robust demand and an increasing proportion of higher-margin products in its portfolio, the company said. "This positive trend positions us well to achieve our desired topline and bottom-line growth in the near future. We also have plans to open 50 exclusive brand outlet across the south market in the coming 3 years where consumers can experience the entire range of Dollar products” said Binay Kumar Gupta, the company's Joint Managing Director.

Dollar products are spread across 6 categories - MAN, WOMAN, JUNIOR, ALWAYS, THERMALS & PROTECT. Bollywood superstar Akshay Kumar, endorsing Dollar Man, is associated with Dollar as the brand ambassador for over 14 years. Actress Yami Gautam is the brand ambassador for Dollar Women i.e Missy and Actor, Saif Ali Khan is the brand ambassador for Dollar Always.

The company has a goal to reach a revenue of Rs 2000 crore by FY26, and to achieve this revenue, the company has already announced a capex in the year 2021, for increasing the capacity of the spinning unit in Tirupur from 22000 spindles to 42000 spindles. That capex has already been incurred and very soon the additional production capacity will start which will help it internally in production.

"Tirupur being the hub for hosiery industry because of its economic and financial viability, we have our production system in Tirupur and the business has grown over the years. We have many dealers who are associated with us in southern market who are a great support for the Company in terms of selling and distribution of the products," added Vinod Gupta.

In the recent past the company started its flagship initiative, Project Lakshya, for growing its sales in south market. The Pilot project was started in Karnataka in 2019. "The response was so impressive that we decided to replicate the same model at Pan India level in phased manner”, said Vinod Kumar Gupta.

For FY24, Dollar Industries’ gross profit grew 22.6% YoY to Rs 50,588 lakhs, whereas EBITDA grew by 61.5% to Rs 15,864 lakhs. The company achieved PAT of Rs 9,020 lakhs, showing a growth of 71.7% YoY, registering a PAT margin of 5.7%.

First Published on Jun 15, 2024 12:15 PM

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