Historic wholesaler takes bold leap into retail with ₹2.8 Cr pilot store
KOLHAPUR, 10 June 2025 — In a strategic shift from its 59-year wholesale legacy, Saraswati Saree Depot Ltd. (BSE: 544230, NSE: SSDL) has launched its first exclusive retail outlet in Kolhapur, Maharashtra. The 15,000 sq. ft. flagship store, operational since 1 June 2025, marks SSDL’s entry into direct-to-consumer retail—a move poised to reshape its revenue streams and margins.
Financial Ambitions Unveiled
The company has invested ₹2.8 Crore in the pilot store, projecting first-year revenues of ₹5–6 Crore. Notably, SSDL is targeting a 20% Return on Capital Employed (RoCE), signaling disciplined capital allocation. Chairman Shankar Dulhani emphasized this as a “consumer-centric evolution,” aimed at unlocking higher margins and direct customer relationships.
Strategic Significance
SSDL, a wholesale powerhouse with 13,000+ B2B customers and 3,00,000+ product SKUs, is leveraging its deep supply chain roots (9,000+ weavers nationwide) to test retail viability. The Kolhapur store—located in SSDL’s operational heartland—serves as a live lab for future expansions. Success here could catalyze nationwide retail rollouts, transforming the ₹1966-born wholesaler into an omnichannel leader.
Investor Takeaway: Cautious Optimism
- Growth Potential: Retail entry diversifies revenue beyond wholesale, potentially boosting margins in India’s $23B ethnic wear market.
- Capital Efficiency: The 20% RoCE target reflects prudent spending—a positive signal in a competitive sector.
- Risks Monitor: Execution is key. Investors should track Q1 2026 sales data and expansion plans before doubling down.
- Short-Term Play: SSDL shares may see speculative interest, but sustainable gains hinge on the store’s revenue/RoCE performance.
SSDL’s Foundation
With origins dating to 1966, SSDL dominates saree wholesale and expanded into kurtis/ready-mades (awarded “Iconic Brand” at Kurti Expos). Its asset-light model—curating from weavers across Surat, Varanasi, and Bengaluru—positions it well for retail scalability.
The Road Ahead
Dulhani’s “cautious optimism” mirrors investor sentiment: “This pilot will guide future scaling.” If Kolhapur hits its ₹6 Cr revenue target, SSDL could emerge as a unique play on India’s cultural commerce—blending heritage with high-margin retail.
Investor Action: Monitor SSDL’s Q1 FY26 disclosures. A strong debut may validate retail ambitions; missing targets could pressure shares. Long-term investors might accumulate on dips, betting on SSDL’s wholesale moat enabling retail success.
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