The Hindu Business Line : Witco looking at private equity, strategic tie-ups for expansion

Witco (India) Pvt Ltd, retailer of luggage, handbags and accessories, is in talks with investment bankers to fund its pan-India expansion. The privately held company, currently present in Chennai, Bangalore, Kochi and Kozhikode , wants to set up outlets in the top 12 cities in the country.

The expansion would require an investment of about Rs 30 crore, according to Mr V.P. Harris, Managing Director, Witco (India). “Besides private equity, we are also looking at the option of entering into strategic tie-ups with retailers who can provide us space,” he said on the sidelines of a conference on industry- B-school interaction, organised by the Confederation of Indian Industry. The high cost of real estate in prime business areas had delayed Witco’s expansion plans for a while, he said.

When asked if the company would look at an initial public offering to raise the capital for the expansion, Mr Harris said “not now.”

Witco plans to launch its premium luggage range in these cities, given the robust demand for such luggage in recent times. The company recently launched foreign brands such as Kipling (a Belgian women’s handbags and accessories brand) and Remova (German luggage brand). Besides introducing more such brands in the Indian market, Witco also plans to re-launch its own brand of handbags and accessories. “We are working with designers to launch this line,” Mr Harris said without sharing any time frame for the launch.

The luggage, handbags and travel accessories market (both premium and on-premium) in the country is largely unorganised. The organised market for premium travel products, of which luggage alone comprises less than 50 per cent, is estimated at about Rs 400 crore.

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