The Hindu Business Line : Hidesign to open two stores in US

HIDESIGN, a homegrown brand of fashion leather garments and bags, will be opening two stores in the US as part of its plans to leverage on its brand's popularity across that country.

The Pondicherry-based company already has a strong presence in the international market with arrangements through an exclusive distributor in South Africa and plans to introduce its brand in Malaysia and other countries through its own outlets and franchise stores.

The proposed stores in the US will be opened in about three months with an estimated investment of $1 lakh (around Rs 44 lakh), the President of the company, Mr Dilip Kapur, said.

Hidesign has a strategic partnership with a South African distribution company, which has the majority stake in Hidesign South Africa. It distributes Hidesign products to department stores in that country, where the Indian brand has earned recognition .

In fact, in the travel bags segment, Hidesign has logged more volumes than some of the international brands, said Mr J. Gilbert, Vice-President.

Mr Kapur, who was here to promote a fashion show to unveil the latest collection of Hidesign products, said in the last two years the company went through a consolidation phase, which saw it achieving a 15 to 20 per cent growth.

With its current turnover of Rs 54 crore this year, Hidesign is bullish on its expansion plans. It expects to invest about Rs 1 to Rs 3 crore on further strengthening its brand in the global scenario.

The company will also be focussing on in-store branding in leading stores in India like Shoppers' Stop and its own outlets in shopping malls to be opened in Bangalore and Delhi.

Started on a modest scale, Hidesign gained strong brand equity in the last five years to change its product mix, of 55 per cent unbranded to 95 per cent branded sales. Besides, 15 per cent of its business comes from leading corporates.