The Hindu Business Line : Arvind Brands plans retail push — After Hilfiger, in talks to rope in another global brand

THERE is a beehive of activity at the precincts of Arvind Brands Ltd. While the company is in negotiations to rope in another international brand, it will beef up its retail presence across categories.

The apparel major is currently in talks with an international brand in the same league as Tommy Hilfiger, and will launch it in the next three months. The company has also launched a major retail initiative for all its brands.

Tommy Hilfiger, the super premium brand of apparels and accessories, will witness a retail push from the existing seven stores to 14 by March next year. The company plans to introduce Tommy Hilfiger jewellery line by next year.

"The growth in retail credit has increased the aspirations of customers, and more people are trying the international brand Tommy Hilfiger," Mr Darshan Mehta, Managing Director, Arvind Brands told Business Line. The Bangalore store recently did Rs 3-lakh business on a single day, he pointed out.

The premium brands of Arvind Brands such as Arrow, Lee and Wrangler grew at a healthy 35 per cent rate, and the company plans to sustain the growth by increasing its retail presence.

Arrow currently has 58 exclusive stores. It will expand to 72 by March 2006. Lee will widen its presence from 56 stores to 69 during the same period. Wrangler will set up 17 more stores, from the 33 it has now. The mass brands are also riding high on the retail thrust. Newport will soon be available across 1,500 multi-brand outlets by March end next year. It is now available across 950 outlets. Excalibur will also be expanded from 1,200 stores to 1,800 stores.

The tailored clothes business is estimated to be around Rs 40,000 crore, and the company's strategy is to convert this huge market into readymades.

"The idea lies in increasing distribution and penetration," Mr Mehta said, while adding that zero excise duty on mass apparels and economies of scale through its completely integrated business would give it the competitive edge against other players.

Arvind Brands has set a turnover target of Rs 435 crore by March 2006. The company closed this year at Rs 350 crore.

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