The Hindu Business Line : Donear on expansion spree; setting up new plant in Surat

New Delhi, Oct. 10 Donear Industries Ltd, manufacturers of the Donear brand of suiting and shirting, said it would set up a greenfield unit for high-end cotton fabric as well as foray into retail through its new brand DCot, as a part of its expansion plan for the next three years.

“We are planning to set up a high-end cotton fabric manufacturing unit in Surat for our new brand DCot as well as to supply other retail brands in the domestic and export markets,” said Mr Ajay Agarwal, Executive Director, Donear Industries.

The unit, spread across seven lakh sq ft, will have a production capacity of 6 million metres per annum of high-end cotton fabrics, taking the total capacity of the company to 17.5 million metres per year. Donear already has a manufacturing unit in Silvassa, Dadra and Nagar Haveli, for producing fabric for its suiting and shirting. The new unit at Surat will be operational by mid-November. Besides, the company is all set to foray into apparel retailing with its new cotton brand DCot. “We plan to open 25-30 franchisee-owned DCot stores in Rajasthan, Madhya Pradesh, Chhattisgarh and Gujarat, in the first phase of the roll-out. In the second phase, which will begin around March 2008, we plan to have 100 stores and a pan-India presence through 400 stores by 2009,” said Mr Agarwal.

DCot will be a discount brand on the lines of brands such as Koutons, and will have the whole range of clothing, accessories and footwear for men. Each store will have an average area of 800-1,000 sq ft.

The company is also gung-ho about its festive period offerings, during which it aims to see a 30-40 per cent jump in sales. The festive offers will be supported by a 360-degree marketing and advertising campaign that will also feature the new Donear suiting brand ambassador, cricketer Yuvraj Singh.

Donear Industries had clocked revenues of Rs 161 crore in 2006-07. It plans to achieve revenues worth Rs 200 crore in the current fiscal, while targeting a turnover of Rs 350 crore by 2009.

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