Taneira sees profitability within 2–3 years, eyes festive season growth: CEO

New Delhi: Taneira, the ethnic wear chain from Tata group company Titan, expects to become profitable within the next two to three years and has projected around 30% growth in the festive season on the back of consumer demand, chief executive officer Ambuj Narayan said on Wednesday.

The company is expanding in metro markets and plans to add 15 to 20 stores each year, with an investment of about Rs 3 crore per new outlet, Narayan said.

"We are now present across 40 cities and have 80 stores. We are also present online. So, it is an omni-channel model that we have, and we are looking at opening more stores in metros and tier I cities," he told PTI.

As part of its strategy, the retailer will consolidate in metro and tier-I cities before moving into tier-II towns. "Certainly, we will open 10 to 15 stores every year, and we are always on the lookout for you know, potential sites for opening stores, so we keep building our pipeline, and whenever we are ready, we will open stores," Narayan said.

Taneira, launched by Titan in 2017, currently contributes less than one per cent of Titan’s revenue of Rs 57,339 crore in FY25.

"We are seeing some very high double-digit CAGR. In the last 3 years, we have grown at about 65 per cent CAGR, and we will continue to grow and expect the business to become profitable in the next 2-3 years," Narayan added.

The company has developed a supply chain with over 300 vendors and more than 12,000 artisans across India.

On the impact of GST, Narayan said, "Taneira will pass all benefits to customers and, wherever possible, will not raise prices."

Currently, sarees account for around 85% of the product mix, with the rest coming largely from ready-to-wear.

"Our target customer for ready-to-wear is certainly the younger women," Narayan said, adding, "we have introduced a lot of new collections in ready-to-wear and at very accessible price points, which is helping us recruit younger customers."

When asked about overseas expansion, Narayan said the focus remains on India for now. "So, we are already serving our international customers through our website tanera.com, and right now we don't have any plans of opening stores in, let us say, the US or UK or other regions where there is a large Indian diaspora, but we may consider that in the coming years," he said.

Online sales currently contribute between 6 and 8% of revenue, a figure expected to reach double digits by the end of the year.