The Hindu Business Line : Zodiac eyes stake in retail chains

WITH increasing competition in the post-quota regime, Zodiac Clothing has decided to invest further in domestic retail chains. The Zodiac group had earlier picked up a 2.93-per cent stake in Shoppers' Stop and is now looking at picking up further stakes in more retail chains.

Mr Salman Noorani, Managing Director, Zodiac Clothing Ltd, said: "We are waiting for an opportunity to invest into domestic retail chains. If we get a good value we would definitely be interested."

However, there are no intentions of increasing its investments in Shoppers' Stop post the retail chain's IPO. Considering the plethora of men's wear brands flooding the market, most of the retailing chains have been choosy about the brands they stock. This has made it difficult for the clothing brands, which want to be available and be seen at these stores. The Zodiac Clothing Company Ltd had made a quick move by actually buying into one of the renowned retail chains, making it one of the first clothing brands to have invested in a retail chain in India.

Today, Zodiac intends focusing on the domestic retail market. The Rs 151-crore Zodiac Clothing is currently on a retail expansion spree with plans of setting up 300 new stores. The company has already invested in a wholly-owned subsidiary for the acquisition of a shirt manufacturing facility in the UAE and to expand its network of retail stores.

Besides, Zodiac has decided to beef up the presence of its Zod brand of club wear and has recently launched its first Zod store at High Street Phoenix in Mumbai. Commenting on the opening of its first Zod store, Mr Noorani said: "Our decision to open a standalone store for Zod is because it's a brand with a trendy attitude and vast design potential." Having stepped into the readymade casual wear market, Zodiac has been waiting for Zod to get established before investing in an exclusive shop for the brand. Previously, Zod was retailed at the Zodiac stores with special counters dedicated for the brand.

With almost 60 per cent of its turnover coming from the export market, the Zodiac group is also keen to build its brand further in the overseas market. For instance, it already retails its brand in the high-end chains such as Bijenkorf in Holland and Globus in Switzerland.

"We would like to see the Zodiac brand in Germany and France too and are talking to certain retail chains," added Mr Noorani.

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