The Hindu Business Line : Royal Classic group plans innerwear brand Smash

THE innerwear market in the country will shortly see a new player called Smash. The brand, being launched by the South-based Royal Classic Group, is expected to be rolled out in the South by the end of this month and in the North by March-April.

The new offering will be priced to target the middle segment, between the mass and premium segments. In the first year, the new product is expected to add Rs 15 crore to the turnover of the Royal Classic Group. In 2003- 2004, the company's turnover was Rs 220 crore. The company is hoping to touch Rs 300 crore for the year ending March 31, 2005.

Smash will have to compete with players such as Van Heusen, Tommy Hilfiger, Jockey, Haines, Rupa and VIP in the domestic segment. The company has entered the segment a little late, agreed Mr H. Anand Aiyer, Brand Head, Classic Fashions, the domestic apparel division of the Royal Classic Group. However, the branded market was vastly underserviced, he pointed out. The innerwear market in the country is dominated by unbranded players.

As far as retail is concerned, the group plans to expand aggressively in the domestic market through its exclusive stores. Currently there are nine exclusive stores in Bangalore, Vizag, Coimbatore, Hyderabad and Indore, with two more to be opened in Pune.

The company plans to open two stores every month. Its average investment per store is Rs 25 lakh.

The Company will invest Rs 4 crore towards brand building and promotions, said Mr Aiyer.

The company also owns the Classic Polo brand, which started with T-shirts, and which has recently forayed into manufacturing shirts and trousers. It has set up capacities to produce 1,000 shirts and 400 trousers a day. Its knitwear division produces 15,000 T-shirts a day. It will also test-market its denim offerings in July.

For the year ending 2004-05, Classic Polo is expected to post sales of over Rs 20 crore with the additional offerings. For the year ended 2003-04, it posted sales of Rs 14 crore, which comprised only sales from T-shirts.

Classic Polo is retailed through more than a thousand multi-brand outlets, 40 shop-in-shops and retail chains such as Shoppers Stop, Globus, Pantaloons, Ebony and Piramyd. It also has 22 distribution points across India with company sales staff.

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