The Hindu Business Line : Pantaloon plans jt ventures with European cos for apparels

Brand focus
Pantaloon reduced its manufacturing operations over the years, outsourcing its apparel brands instead.
The company is targeting a Rs 500-crore turnover from the duty-free business where it hopes to include apparels

Mumbai Jan. 19 Pantaloon Retail is planning to forge two new joint ventures with European manufacturers in clothing for men and kids this year. These would be separate mass premium brands which the retailer would initially bring into the country with intentions of manufacturing them at a later stage.

Speaking to Business Line, Mr Jaydeep Shetty, Head, New Business, Pantaloon Retail, said, ``We intend having two joint ventures with European manufacturers this year in the area of men's and kids clothing. Our target is to reach Rs 100-crore turnover within three years of launching them.''

Having forged ventures with international companies such as Etam and Lee Cooper in the past, Pantaloon is now planning to stretch them into new areas. For instance, the lingerie brand of Etam would get into the ready-to-wear category while Lee Cooper would soon be re-launched in the market and pitted against brands such as Levi's and Pepe in the premium end of the denim market. Pantaloon is already targeting Rs 200-crore turnover from the Lee Cooper brand within the next two years.

The retailing company has reduced its manufacturing operations over the years and has been outsourcing its apparel brands over time. Pantaloon Industries, its associate company, which had been engaged in manufacturing, has negligible operations today. ``Today we are focussed on being a retail company and have been outsourcing from other manufacturers and also the overseas markets,'' Mr Shetty said. For instance, in the case of its French lingerie brand, Etam, the retailer would continue to import the brand considering the lack of technology available in making lingerie in the country.

Besides, apparel may also get added as new category to be part of its duty-free businesses once it wins more bids for airports. Apart from the usual duty-fee categories such as liquor, chocolates and confectionary, the retailer may bring in apparel as a new category at its Alpha Future stores. ``If we win the bids for the Hyderabad airport, we might bring in apparel,'' says Shetty. Pantaloon is targeting a Rs 500-crore turnover from its duty-free business and is expected to start operations at the Delhi airport within the next few weeks.

The retailer is also eyeing the travel business. It has recently tied up with Mumbai-based travel agency Travel Port at its central brand of stores in Pune. ``Presently we are in a supplier-based relationship but we might look at investing into the travel business later,'' says Shetty.

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