The Hindu Business Line : Gokaldas Images to create exclusive brands for retailers

Although Gokaldas Images has sold its casual wear retail chain Weekender to value fashion retailer Primus, the garment exporter is looking at other ways to strengthen its domestic presence. This includes creating exclusive brands for retail chains and setting up exclusive outlets for its lingerie brand Enamor.

“We want to create exclusive in-house brands for retailers which will be managed by us and belong to us. We are in talks with two retail chains for this,” said Mr Jagadish Hinduja, Chairman, Gokaldas Images.

The company also plans to set up exclusive brand outlets for Enamor in Ahmedabad and Delhi to start with. “This will be followed by a roll-out in cities such as Bangalore and Kolkata,” said Mr Debashis Chatterjee, CEO, Enamor.

Recently, Gokaldas Images sold Weekender to the Bangalore-based Primus, part of garment exporter, K. Mohan and Co, for Rs 50 crore. The move to sell Weekender was prompted by the company’s decision to “focus more on exports,” said Mr Gokaldas.

The Bangalore-based exporter had in 1987 forayed into domestic retail with Weekender stores. Today, there are around 50 Weekender stores across the country. Primus is involved in retailing and distribution of lifestyle products of brands such as Adidas, Levi’s, MTV, Nike, United Colours of Benetton and Reebok.

To increase exports

Keeping long-term interests in mind, what with a strengthening rupee hurting exports, garment exporter Gokaldas Images is toying with other “possibilities” to curtail its losses. They include increasing exports to Europe and importing fabric. The company is also looking to sell its own branded products abroad.

Gokaldas Images, which primarily exports to the US clients such as VF Corp and Banana Republic, is talking to the European retailers to “enlarge the euro portion of exports.” Seventy per cent of Gokaldas Images’ exports are to the US, while clients in Europe, such as Benetton, account for 20 per cent.

Gokaldas Images is also looking increasing its imports of fabrics from more countries than its current sources.

The company already imports around 30-40 per cent of its fabric requirements from China, Taiwan, Korea, Indonesia, Italy and Ireland. “This could go up to 50 per cent,” said Mr Hinduja.

Realising that manufacturing outside India could also be profitable, Gokaldas Images is eyeing the markets of Vietnam and Egypt to enter into joint ventures or other agreements for outsourcing production.

More Stories on : Brands | Retailing | Readymade Garments

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