The Hindu Business Line : VIP group plans to consolidate business

The group, which owns several brands in men and women's under garments and apparel sector, operates through three companies. They are Maxwell Industries, Microtex India and Lovable Lingerie Pvt Ltd.

According to Mr L.V. Reddy, CEO of Microtex India, the consolidation of the businesses will depend on the future plans of the individual companies.

"This is still in the ideas stage. We may merge the companies to attain a critical mass. A final decision will, however, be taken after studying the investment and growth plan of each company," Mr Reddy told reporters at a press conference here today.

At present, none of the companies are listed in any stock exchange. According to Mr Reddy, the promoters may consider an initial public offering (IPO) after consolidation of the businesses.

In the innerwear segment, the VIP group deals with brands such as Frenchie, Rivolta, VIP, Daisy Dee Bra, Lovable and others. In the garments segment, it owns the Live-In brand.

The Lovable brand is owned by an US company and the VIP group has the marketing rights for India. The company is looking for similar marketing rights for other foreign brands.

"Actually there is hardly any noteworthy foreign brand left which can be marketed in India. Still we are looking at some of the European and US brands but I would not like to disclose the name now," he said.

The company has units at Bangalore and Coimbatore. A new one is coming up at Himachal Pradesh at a cost of Rs 10 crore. It would be ready for operations by the year-end.

At present, Live-In products are available in 4,000 outlets in the country. Apart from that there are 50 exclusive outlets. The company is planning to open three to four such exclusive outlets in eastern India during the next four months.

During 2003-04, Microtex India has recorded a turnover of Rs 100 crore. The company is expecting a business growth of 10-15 per cent during the current financial year.