Decathlon to invest 100 mn euros in India in next 5 yrs to expand retail, manufacturing

New Delhi, Aug 21 (PTI) French sports retailer Decathlon on Wednesday said it will invest 100 million euros (around Rs 933 crore) in India, one of its fastest-growing markets, over the next five years to expand retail footprint and manufacturing operations.

The company, which garnered nearly Rs 4,000 crore (unaudited) in revenue for 2023-24, expects its business to double in the next three to five years, said Decathlon India CEO Sankar Chatterjee.

Currently, India is among the top 10 markets for Deacthlon, where the company plans to add 10 to 15 stores every year and expand its network to 190 stores, spanning 90 cities, he said, adding that the focus would be to expand on Tier I, II & III cities.

At present, Decathlon operates 127 stores in India and gets around 11-12 per cent of sales from online channels now.

The company, which entered India by starting production in 1999 and retail operations in India in 2009, has invested 100 million so far and will invest another 100 million over the next five years.

The sports retailer is focusing on a 'make-in-India' strategy as it believes it can create a difference by providing affordable products in a country where the passion for sports is gradually picking up.

"We are here to invest 100 million euros in the next five years in our business expansion linked with physical expansion, reaching 90 cities and towns with more or less 190 stores," said Chatterjee.

Besides, Decathlon will also invest to expand its digital footprint to engage with more customers through e-commerce channels, especially in smaller places, where its stores are yet to open.

"We will invest in our value chain and logistics, with automation and separate aspects. We keep developing our digital assets, keeping in mind our app and website, which are having lots of traction through our Android and iOS environments. We focus a lot on making India strategy in India because we really believe we can create a difference to that," Chatterjee said.

Currently, 68 per cent of the goods sold in India are locally produced. Besides, 8 per cent of Decathlon's global product range is also met through Indian manufacturing.

"We are aiming to take the domestic manufacturing for Decathlon India to 85 per cent by 2026," Chatterjee said.

This investment will also help Decathlon to enhance its product portfolio, which consists of around 60 sports under one roof.

It will also invest in the value chain in terms of logistics and supply chain in the last-mile deliveries.

Dectahlone directly employs 5,700 people and expects this number to go up by 8,500 in the next five years. The company is working with 110 factories, of which many are partner factories and suppliers.

"At the same time, we are also expanding our product portfolio. If you see plastic composite metal bicycles, these kinds of components are pretty new in India...where we are trying to expand and for that, we need more factories and more wings to succeed," he said.

Decathlon Global Chief Retail and Countries Officer Steve Dykes said India now plays an important role for the company.

"India is a unique and exciting market with numerous opportunities. We have commitments to accelerate our efforts in India to make a societal impact to inspire more and more Indians to play," he said.

Dykes further said Decathlon will explore new sales channels as B2B to increase its impact.

"We have a potential for India to play more and more their role in Decathlon research and design and processes over 2 million people are engaged globally in sports activity with a Decathlon clay app, and we have a big commitment to developing a future talent that comes from India," he added.

Over B2B expansion, Chatterjee said this would be a new channel for the company, where it would facilitate corporate houses, and educational and government institutions to facilitate its product.

"The approach for B2B is wholesales to facilitate our growth," he noted.

In March, Decathlon said India is a "big priority" market and expects it to be among its top five global markets within five years. PTI KRH KRH BAL BAL