Hi Tushaar,
I think he meant to say that working along with Jabong and myntra to sell garments online, Indian Terrain will hold inventory for them(jabong, myntra) and in return will command 200 bps higher margin by selling online. So holding inventory will cost some 30-40 lacs, and in return with 30 crs sales online (10% of total sales) incremental sales will be around 1 cr (that’s a guess I think). Not a wise decision, coz it will block more money in working capital and require additional money as sales increase, which is kinda anti-moat(coining a new term here).
Hope it explains.
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