The Hindu Business Line : Reliance to stuff more products into pillow brand Recron

The pillows brand Recron will be stretched to more categories in the home furnishing range. Reliance Industries also hopes to float a separate retail division within the company in the near future.

New products such as cushions, bed covers and pillowcases are being test marketed in certain markets in the North before they are launched nationally.

Mr Man Mohan, Chief Operating Officer, Polyester Sector, Reliance Industries, said, "There are plans to launch new products under Recron and we will be approaching big chains to sell our products. The company may even think of having a separate retail division."

The company's R&D facility at the Patalganga plant in Maharashtra is responsible for researching products before they are launched in the market. Reliance Industries has decided to increase the number of outlets from 3,000 to 5,000.

The brand is also visible at Vimal outlets, belonging to the company's textile division. Reliance has a retail network through its Vimal (for fabrics), Harmony (for home furnishings) and Mangaldeep outlets.

"We do not necessarily intend using the existing Vimal or Harmony brands' retail network for retailing the Recron brand, although some stocks may be made available at these outlets,'' said Mr Mohan.

With foreign retailers waiting to enter the country, the company plans to adhere to their quality standards. Mr Mohan said, "We are looking at serving these international chains once they are here."

Presently, its Recron certified pillows brand has a small presence in the company's overall operations, registering a turnover of Rs 25 crore. "This year we intend a turnover of Rs 40 crore for the Recron brand and segmenting the pillows market with our price points," said Mr Mohan.

Reliance Industries plans to launch a VFM (value-for-money) pillow at below Rs 100. Its existing Recron brand of pillows is priced at Rs 200 plus. Apart from the economy segment, the company intends straddling the luxury segment with its pillows priced Rs 250 onwards.

The company's strategy is to enter those segments where there is no dominant organised player. Categories such as pillows and bed covers remain fragmented without a national player.

On the advertising strategy for the Recron brand, Mr Biju Dominic, Vice-President, Mudra Communications, which handles the Recron brand, said, "We have not used mass media advertising for Recron so far and intend using communication at the retail level to create awareness."

The advertising agency has been developing the brand's distribution network by selling its product at unconventional outlets such as grocery stores, restaurants, car showrooms and medical shops.

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