The Hindu Business Line : Grasim plans expansion; entering tier-I, -II cities

MR S. KRISHNAMOORTHY, President & Unit Head, Grasim Industries (left) with actor and brand ambassador Akshay Kumar in the Capital on Thursday. — Ramesh Sharma

New Delhi May 17 Grasim Industries Ltd's retail division is in expansion mode. The company plans to increase its exclusive outlets this year.

"We plan to add 30 more exclusive brand stores to the existing 45 by the end of this year. In addition, the company also plans to open 30-40 stores each year," said Mr S. Krishnamoorthy, President and Unit Head, Grasim Industries. The company wants to extend the brand to all parts of the country and would penetrate tier-I and tier-II cities through the exclusive outlets, he added.

Grasim brand had clocked a turnover of Rs 175 crore last fiscal and is growing by 20 per cent year-on-year, said Mr Krishnamoorthy. "Almost 60 per cent of our revenues come from the domestic market and rest from exports. Majority of our exports are to the US and Europe."

Brand ambassador

Grasim Suitings has also appointed actor Akshay Kumar as its brand ambassador. A new television campaign featuring the actor will be aired from July onwards.

On the global textile industry, Mr Krishnamoorthy said the Indian garment market is expected to have a 15 per cent share in the global market by 2010 from its current share of around 3-4 per cent. Indicating that direct garment exports to the US may dip due to high duty levied by the government there, he said the dip would be compensated by sales in other markets in Africa and South-East Asia.

"Manufactured garments being exported to the US from India attract high duties, so international brands which buy unfinished products from manufacturers like Grasim, process them in South-East Asia and Africa. This might lead to a dip in direct exports to the US and Europe," he added.

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