The Hindu Business Line : Hidesign mulls diversification to hospitality sector, IPO

HIDESIGN, the home-bred desi brand with videshi ambitions, has sewn up plans for a series of initiatives that would see the company tapping a larger chunk of the corporate gifting business and expanding into new overseas markets with revenues shooting up past Rs 100 crore.

The company is in the process of diversifying into the non-traditional area of hospitality, and is mulling an initial public offering (IPO) that would enable it to expand into the overseas market.

The President of Hidesign, Mr Dilip Kapur, told Business Line: "Though both the diversification into hospitality and the IPO plans have still not been firmed up, we expect to look at this over the next 2-3 years mainly to garner funds that would help us reach out and tap newer markets.

"The corporate gifting culture has emerged as a major area of growth for a branded product range like Hidesign. We are associated with ICICI Bank, Standard Chartered, American Express, and other major companies, which seek our products to gift their valuable customers or even their employees."

According to him, 2004-05 would see the company's total revenues touch Rs 73 crore in India, Rs 10-12 crore in South Africa, and about Rs 2 crore in Dubai, "almost stretching us to the Rs 100-crore mark. This would be a quantum jump from Rs 53 crore we logged last year from domestic sales."

He added that so far, the company has established about 28 exclusive outlets.

"All are company-owned as we were not happy with the franchisee model. This is complemented by about nine overseas stores. We expect to grow the number of retail stores significantly over the next year or so and plan about 8-10 more stores overseas."

Mr Kapur said: "The Indian market for leather goods is estimated at Rs 1,000 crore and of this, the branded market is about Rs 100 crore. Our competition is only from some Italian manufacturers."

"A significant part of this consumption would be driven by corporate users taking to such branded goods to make a statement."

Commissioning its first exclusive outlet in Hyderabad with Miss India Jyoti Brahmin sporting some of the latest Hidesign products, Mr Kapur was bullish on the potential here.

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