The Hindu Business Line : Kohl's to step up sourcing from Celebrity Fashions

Kohl's Corporation, among the top lifestyle retail chains in the US with 749 stores across 43 States, will look to step up its sourcing of apparel from the Rs 154-crore Celebrity Fashions Ltd, among its top suppliers from India.

Ms Peggy Eskenasi, Executive Vice-President of Kohl's Corporation, who was in the city to inaugurate Celebrity's spanking new Rs 30-crore shirt plant at Irrungatukottai near Chennai, said that India is one of Kohl's favourite markets.

The chain currently sources material worth more than $100 million from India, which is around 10 per cent of its requirements, according to her. Celebrity accounts for 10 per cent of Kohl's outsourcing from India.

Mr V. Rajgopal, Managing Director of Celebrity, said that there was scope to step up supplies to Kohl's from the dedicated four-million-a-year trouser-making facility that the company acquired from Ambattur Clothing earlier this year for Rs 80 crore. With more lines going on to double-shift, this would be stepped up to five million.

Speaking to newspersons after the inauguration, Ms Eskenasi said that Kohl's saw opportunity to increase sourcing across categories.

"We love to do business here because suppliers can deliver intricate designs and fabric finishes."

While clarifying that India would not be the cheapest market to source from, the ability to supply more value-added garments gave an edge to Indian suppliers over other Asian countries, she said.

The strong European customer base also helps in sharpening this design edge and moves India up the value chain.

Mr S. Surya Narayanan, Executive Director and CFO of Celebrity, said that supply to Kohl's accounted for 40 per cent of Celebrity's Rs 121-crore export turnover.

The acquisition of the trouser-making export unit at the MEPZ, which supplies to big brands such as Gap, Banana Republic, and Levi's, will see Kohl's contribution to Celebrity's turnover come down to 25 per cent.

The new shirt unit of Celebrity, across 170,000 sq ft, has come up at the SIPCOT Apparel Park.

Mr Srivenkatesa, COO of the new unit, said that the specialist shirt unit would have an installed capacity of 10,000 casual and 5,000 dress shirts a day.

He expects the plant to notch up sales of Rs 130-140 crore by 2007-08 and eventually create 2,000 jobs.

He said that the unit, which will soon have 1,000 machines, has firmed up three large customers, including Kohl's, who would take up 80 per cent of the production.

Celebrity's current overall shirt-making capacity of 4.5 million a year will go up by two million a year when this plant is full steam.

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