Footwear brand Khadim is expecting a gross revenue of Rs 800 crore in the current fiscal year and a gross margin expansion of around 100-150 basis points, driven by the company’s focus on developing a premium portfolio and on store expansion.

“We are looking at a gross revenue of around Rs 800 crore in FY23,” Namrata Chotrani, CEO, Khadim India, said on Wednesday.

She said the company has been able to bounce back in terms of sales by value to the pre-Covid levels and is looking to match it in terms of volume by the end of FY23 or early FY24.

“People have started coming back to the stores this year. While inflation is a concern, we are trying to ensure that our products remain affordable,” she said.

Around 80 per cent of the company’s retail footwear sales are below Rs 1,000 where the GST rates have gone up from to 12 per cent from 5 per cent.

Coupled with inflation, the company had to increase prices which helped to protect the margins. “Because of premiumisation, our gross margins andASPs (average sale prices) have increased. We are creating products with higher perceived value for the customers.This is also leading to margin improvement,” she said.

The company, which has around 800 retail stores, is looking to add around 70-80 stores on an annual basis which will be through a combination of company-owned and operated stores as well as franchisee outlets.

The company will look to consolidate in eastern and southern India and also expand the brand in the west and northern parts of the country.

The company has launched a brand campaign ahead of festive sales by roping performers in YouTube.