Croma eyes to reach operating profit level in current fiscal

 Notwithstanding the current happenings within the Tata group, Croma, the consumer electronics chain of the Tata Group, is eyeing break-even at an operating profit level in the current fiscal.

 “This year, we are already EBITDA (Earnings before interest, taxes, depreciation and amortisation) positive. From 2012 onwards, every store has been EBITDA positive on a combined basis. This year, at a company level, we are also EBITDA positive, and we should be breaking even at an operating profit level in FY17,” Avijit Mitra , chief executive officer of Infiniti Retail, which runs the Croma chain, told DH.

The company is also bullish about the prospects of its online selling channel, going forward. “As of now, 5% of our sales are through the online channel. We expect that in the next three to four years, it will become one of our larger stores, and it should go overall to about 10-11%,” Mitra said.

Croma, which currently has 97 operational stores, is also planning to further expand its presence across the country. “We have been opening 10-15 stores every year, and we will continue to do that. We have already opened about 10 this year and we have another four lined up which would be opened before March. We have about eight or 10 stores that are tied up for next year’s opening,” Mitra said.  “Currently, we have 97 stores operational and it should cross 100 by this financial year. We have invested around Rs 700 crore so far on our stores, and we will be investing Rs 40-50 crore in the next two to three years,” Mitra added.

Meanwhile, in order to serve its existing base of loyal customers better Croma and Bajaj Finance (BFL) have launched the Croma-Bajaj Finserv Privileges Card.