The Hindu Business Line : Crew BOS setting up office in Hong Kong, plans retail store

CREW BOS, a New Delhi-based leather and accessories manufacturer, is opening an office in Hong Kong. This will facilitate joint ventures and alliances with parties in Hong Kong, China and the Far East, which are known to be hunting grounds for large companies looking to outsource production.

According to a company official, the company at present sources a number of its products from Hong Kong. Setting up an office there would also help the company outsource the bulk of its offerings from China. Considering that the labour in China is more efficient, the company may get better price discounts, therefore improving profitability. The company may explore a contract-manufacturing pact with a Chinese partner.

Crew BOS recently bagged a $2.5-million order from a large US retailer mainly for bags, belts, footwear and home furnishings. The company is also gearing up for a quota-free 2005 by expanding its existing facilities at Gurgaon and Manesar.

It is planning a flagship store in Gurgaon and is keen to float a watches or sunglasses brand in the next couple of months.

According to the official, the company may either go in for unbranded import or tie up with an established brand and market the product locally.

Of the Rs 14 crore the company received through its IPO recently, Rs 90 lakh will go towards setting up the flagship store and the rest will be invested in the expansion of its manufacturing units. The expanded capacities will be operational by July 2005.

Some of the company's big-ticket customers are GAP Inc, Banana Republic, Old Navy and Esprit.

In 2003, the company posted a turnover of Rs 53.48 crore.