Financial Daily from THE HINDU group of publications
Tuesday, Jul 26, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jul 26, 2005 |
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Marketing
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Channels and Franchises Shirt Company to make, sell Hot Wheels products Anna Peter
Mumbai , July 25 SHIRT Company (India) Pvt Ltd, an Indian export house, has signed an MoU with Mattel to manufacture and market Hot Wheels products in India. According to Mr Shivanand B. Shetty, Chairman, Shirt Company, the company has acquired a licence to market the brand Hot Wheels in the country. The brand's target audience is boys between the ages of three and 15. The brand sells toys such as cars, trucks and other games. It was launched in 1968 and its vintage and race car models are considered collectible items — for children and adults. Globally, its more popular offerings include Monster Trucks and Mechanix. Mr Shetty said that in the US the brand does better than Barbie. In India, Hot Wheels will be sold through stores selling Barbie products and the focus will be re-oriented to concentrate on both brands. There are about 170 shop-in-shops and stores in malls around the country currently selling Barbie products. The company has already hired a British designer and its first line is likely to be ready by the end of the year. It will come to the market by the summer of 2006. Hot Wheels product range will include jeans, jackets and t-shirts, lending the collection a very sporty look, according to Mr Shetty. He said that in the first year of business, the Barbie stores had had sales of Rs 6 crore and the company hoped to more than double this figure in 2005-06. Meanwhile, the company has sold a five per cent stake to Alok Industries. It will realise Rs 7.5 crore from the sale, which will be ploughed into setting up a garment unit at Navi Mumbai. In all, the project will cost Rs 22 crore. The company is planning an IPO and in all likelihood it will enter the capital market in September 2005. It is hoping to approach the market for Rs 45-50 crore to fund its manufacturing and retail expansion plans. Though the domestic children's wear market is disorganised it is lucrative. Majors like Provogue have indicated a keenness to enter this segment in future. However, there are very few organised or branded players, with most of the children's clothing being made on a job work basis or by small players.
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