NEW DELHI, Mar 15: Startup baby products maker Baby Forest is targeting tie-ups with premium babycare hospitals to open about 100 kiosk type stores as part of its sales network expansion strategy, according to its Founder and CEO, Gagan Agarwal.
The Noida-headquartered firm, which has a range of ayurveda-based premium baby skincare products along with other items for infants and kids, is targeting a revenue of Rs 250 crore in the next five years, Agarwal told PTI.
The company had started with independent stores in malls in the National Capital and Bengaluru.
“After having three mall stores, we decided one more strategy, to have a kiosk type store in premium baby care hospital,” Agarwal said, adding the company now has kiosk type stores in hospitals such as Motherhood Noida and Artemis Gurgaon, among others.
“We are looking forward for about 100 such stores in hospitals, only in the hospitals,” he said.
Explaining the rationale behind the strategy, Agarwal said,”What we feel is somehow the starting journey (for a baby) is from the hospital only. The mother has to take the baby to the hospital for every three months, even if the baby is fine for the normal checkup and vaccination and all. That is where we find the potential (for babycare products).”
In terms of overall sales network, he said,”For mall stores, we will be doing only in Tier 1 and metro cities. We are looking at about 15 stores and for the hospital stores we will choose wherever the premium hospital opportunity we get.”
Citing the example of Agra, he said if there is a premium hospital available, the company will seek to tie up to tap a premium audience.
On revenue target, he said,”By next fiscal year, we are looking to do about Rs 100 crore and for next five years, we should do Rs 250 crore.”
When asked about funding, he said,”Considering our expansion plans, we will need funds but we will not tap the equity market. We will look at bank funding.”
Asked if the company planned to go public, he said,”So far we have kept the company private and will continue to do so for at least next four-five years.” (PTI)
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