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Swetha Kannan

To invest about Rs 10.5 cr; plans store in Mumbai

Recently in Tirupur

Tirupur-based garment export company Royal Classic Group hopes to beef up presence in domestic retail through its brand Classic Polo. It has 28 exclusive stores in the country and the target is to have 60 by March. About Rs 10.5 crore will be invested on retail expansion.

The brand, which is strong in the South, looks to expand in the rest of the country. Apart from Tirupur, Coimbatore, Chennai, Bangalore, Trichi, Salem and Hyderabad, there are stores in Chandigarh and Indore.

Plans are on to open one in Mumbai soon.

Classic Polo is also present in 1,200 multi-brand outlets and in departmental stores such as Shoppers' Stop, Pantaloon, Globus and Central.

Says Mr R. Gopalakrishnan, Chairman, Royal Classic, "When we began our exports business, there wasn't much buying power in the county. Now, there is noticeable buying power in every segment. Although realisation in exports is quick, margins are better in domestic retail."

Mr R. Sivaram, Executive Director, Royal Classic, says the company didn't want to be known just as an exporter or a T-shirt company. "Since production has always been our strength, we wanted to build on that and create a well-known domestic brand as well. We started the Classic Polo brand in 2001 with T-shirts. We then ventured into woven garments with shirts two years ago and trousers last year,"

Based on customer feedback, it recently forayed into denim-wear. It also entered into a tie-up with Birla Cellulose Modal, a division of the Aditya Birla Group, to source modal — a viscose fabric that absorbs moisture faster than cotton. This fabric has been used to produce the Classic Polo Swiss Club range of tees.

Exclusive stores

Initially, Classic Polo was sold only in multi-brand outlets (MBOs). In 2004, the company opened exclusive stores, when it realised that it had a huge range to offer "with an average of four new styles of T-shirts every day" and not the required shelf space in MBOs. Today, Royal Classic wants to go in for large format exclusive stores, especially on high streets.

"The psyche of buyers has changed. Shopping now is for fun and customers look for a relaxed and comfortable ambience. Cramping and congestion are just not helping. So, we are looking to renovate and relocate wherever possible to become big," says Mr Sivaram.

The average size of a Classic Polo store (called Relax Junction) is 1,200 sq feet. The newer stores will have an average area of 2,500 sq feet. Its store on Brigade Road, Bangalore, with an area of 4,000 sq feet, will become the brand's biggest outlet after renovation.

Last fiscal, the group had a turnover of Rs 225 crore of which domestic retail contributed Rs 20 crore. This year the company hopes to finish with a turnover of Rs 300 crore, with Classic Polo contributing Rs 36 crore.

New plant

Meanwhile, the company's proposed trouser plant in Palani (in Tamil Nadu) is expected to begin operations in December.

The plant will have an initial production capacity of 800 pieces a day.

About Rs 3.5 crore has been invested in the factory; 150 sewing machines have been bought from Durkopp Adler, Germany. Currently, the company sources trousers from Bangalore.

The group will invest Rs 40 crore this year on machinery, capacity expansion, retail outlets and brand promotion.

More Stories on : Brands | Readymade Garments | Retailing

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