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Results · Commerce & Consumer Brands

Neeru's targets ₹500 Cr revenue in 2-3 years

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Date
Company
Neeru's
What it does
Ethnic wear retailer
Kind
Results
Based in
Hyderabad
Founded
1971
Sector
Commerce & Consumer Brands

What they do

The pandemic cut Neeru's topline by nearly 50%, halting its growth and shutting stores

What happened

The company aims to reach ₹500 Cr revenue in 2-3 years, with online sales now 25-30% of business

Why it matters

Neeru's targets an average run rate of ₹7-8 Cr from its website in the next 12-18 months

The details

  • Neeru's, an ethnic wear retailer, aims to reach ₹500 Cr revenue in the next 2-3 years.
  • The company's online sales currently make up 25-30% of its business.
  • It targets an average run rate of ₹7-8 Cr from its website in the next 12-18 months.
  • The Covid-19 pandemic halted growth, with stores shut and sales dropping to zero in 2020.
  • The pandemic caused a nearly 50% contraction in topline.
  • Before the pandemic, the company had projected 30-40% year-on-year growth for 2-3 years.
  • The pre-pandemic website was not set up for commerce and was not a sales engine.
  • The company's goal is to recover and surpass pre-pandemic levels through online expansion.

The bigger picture

  • The pandemic exposed the company's lack of e-commerce capability, as its website was not a sales engine.
  • With physical stores shut, the company had to pivot to online sales to survive.
  • The target of ₹500 Cr revenue signals a strong recovery ambition after a 50% sales drop.
  • Online sales growing to 25-30% shows a strategic shift towards digital channels.

About the business

  • Neeru's sells ready-made ethnic wear like salwar suits, which were rare in Hyderabad when it started.
  • The company initially wholesaled to shops across India, putting Hyderabad on the fashion map.
  • It opened its first large store of 3,000 sq ft in 1996, when most stores were 40-50 sq ft.
  • In 2012, it opened a flagship store, Neeru's Emporio, in Jubilee Hills, spanning 30,000 sq ft with luxury interiors.
  • The company has run marketing campaigns with celebrities like Karishma Kapoor and Kajal Agarwal.
  • It signed Sonam Kapoor as brand ambassador for three years.
  • The business operates primarily in Hyderabad and other parts of Andhra Pradesh and Telangana.

What happens next

  • Reach ₹500 Cr revenue in the next 2-3 years.
  • Achieve an average run rate of ₹7-8 Cr from the website in the next 12-18 months.
  • Continue growing online sales, which currently make up 25-30% of the business.

Founders

  • Basant Kaur, Founder
  • Harish, Co-founder (son of Basant Kaur)
  • Avnish Kumar, MD and CEO

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