The Hindu Business Line : Koutons Retail plans foray into China, W. Asia

Mumbai, Feb. 4 Gurgaon-based Koutons Retail India Ltd plans to foray into China by the end of this year, Mr D.P.S. Kohli, Chairman, told Business Line.

“We have seen that market, not many Chinese brands are present. You only get to see Western brands and so we needn’t worry about competition from local players,” he said.

Koutons sources most of its materials from China and some from Japan, so it would be an opportunity to leverage the sourcing with the marketing, he explained.

Manufacturing base

The possibility of a manufacturing base in China is not ruled out, but no plans have been made yet, he said.

The company will be going to China in the next two months, as a part of the Clothing Manufacturers of India group, to explore the possibilities.

Apart from China, Koutons has firmed up plans for the West Asian market and plans to set up 24 to 25 stores in Dubai and the United Arab Emirates. The company has allotted Rs 40-50 crore as working capital for the year 2008. The total capital would be around Rs 100 crore for the year, said Mr Kohli.

The market capitalisation of the company is around Rs 3,000 crore.

Mr Kohli said the company is not looking to enter the footwear market, but is ready to roll out its ladies’ wear under the brand name Koutons Le Femme and kids’ wear under Junior.

Around 200 independent outlets would be set up to begin with.

The company recently acquired 51 per cent stake in Touchwood International Pvt Ltd, which owns Upper Class, to expand into the women’s segment.

Currently, Koutons is a mass apparel maker for men’s garments.

Outlets

The company operates 1,150 stores, of which 612 are exclusive outlets of Koutons, and 528 of Charlie Outlaw.

The company’s scrip closed on Monday at Rs 1,030, up 1.87 per cent from the previous close of Rs 1,011.1.

More Stories on : Retailing | Overseas Investments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page