Results · Commerce & Consumer Brands
Neeru's targets ₹500 Cr revenue in 2-3 years
By Startup Enthusiast ·
- Date
- Company
- Neeru's
- What it does
- Ethnic wear retailer
- Kind
- Results
- Based in
- Hyderabad
- Founded
- 1971
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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