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First-generation techie Durga Prasad Chalavadi knew that despite the popularity of the saree, the industry was highly unorganised and had other problems, including fragmentation, quality issues, and a disorderly value chain, from sourcing to design.

Chalavadi recognised the opportunity the sector held, and the importance of resolving quality issues, increasing relevance, and enabling transparency and authenticity for the customer. He understood that creating exceptional retail experiences, both online and offline, could be the future.

This led to the birth of Hyderabad-based Sai Silks Kalamandir Limited (SSKL), one of the largest retailers of ethnic clothing, mainly sarees, in South India with an initial investment of Rs 1 crore from his savings.

The company primarily focuses on premium and ultra-premium sarees for weddings, parties, occasional, and everyday wear. It also caters to men’s ethnic wear, children’s ethnic wear, and value fashion items, including fusion wear and western clothing for women, men, and children.

SSKL began operations in 2005 with a single store. Seventeen years on, it has grown to 54 stores with an aggregate space of about 6,00,000 square feet. It has successfully embraced and profited from the growing consumption trend in the four South Indian states – Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu.

With a focus on spreading India’s vibrant culture, traditions, and heritage through a diverse range of products, SSKL operates through four different format stores, Kalamandir, Mandir, VaraMahalakshmi Silks, and KLM Fashion Mall, and through ecommerce channels such as its own website and other online marketplaces.

The company aims to be the go-to destination for every family looking for value fashion, and aims to do this by building a robust portfolio of strong brands, developing an insight-led design and apparel team, expanding the network of its retail outlets, and increasing customer loyalty through quality products.

Competing with the likes of Pothy’s, Nalli, Kalyan Silks and others, SSKL has become one of the top saree retailers in the nation and is the first large saree retailer to go for an IPO.

Commenting on SSKL operations and the upcoming IPO, Durga Prasad Chalavadi, Managing Director, Sai Silks Kalamandir Ltd says, “At the core of our strategy is that the system should run the business and we should not be dependent on individuals alone.”

Stating that he had a software background and had been in the US, he said he fully understood the importance of technology and chose this business because he thought he could make a difference in an unorganised market.

“Today, when we are tapping capital markets and have received SEBI’s nod to raise funds through our upcoming IPO, I can say that our business model has been proven and time tested. We can scale up our business with minimal effort and optimised costing due to our well-differentiated format stores, backward integrated operations, and solid technical support system,” he says.

The SEBI nod for an IPO came in November 2022; it is likely to be launched in the next couple of months.

A significant portion of the proceeds will go towards business expansion and to fund working capital requirements. SSKL intends to open approximately 25 new stores across multiple states and two new warehouses in Hyderabad and Chennai.

The company declared Rs 1,129 crore in revenue and profit after tax (PAT) of Rs 57.69 crores in FY22, with Return on Equity (ROE) of 21.22% and Return on Capital Employed (ROCE) of 21.71%.

“SSKL’s success is a result of the work of a committed supply chain team, strict SOPs, a semi-automated system with a reliable logistics chain, well-equipped infrastructure, and a tech support team that is available around the clock. The data-driven systems provide information and recommend the movement of appropriate stock to the appropriate stores at the appropriate time,” he says.