The Hindu Business Line : S.Kumars chalks out Rs 360-cr retail expansion plan

Brand power
The company plans to bring in 17 international brands phased over the next five years.
Of these, five will be in the luxury segment, six in super-premium and six in the premium segment.

Chennai , July 27

Brandhouse Retails Ltd, a wholly owned subsidiary of S.Kumars Nationwide Ltd (SKNL), has sketched a Rs 360-crore retail expansion plan.

According to Mr Tarun Joshi, CEO, Brandhouse Retails, the company is planning to bring in 17 international brands phased over the next five years. "Of the 17 global brands, five will be in the luxury segment, six in super-premium and six in the premium segment," Mr Joshi told Business Line.

It has already signed pacts with luxury menswear brand Dunhill and women's fashion wear and accessories brand Escada. SKNL, apart from Reid & Taylor, plans to launch two in-house brands in August, taking the total proposed brand portfolio to 20.

On different equations

The international brands coming in will be on different equations. Some brands will be signed under a licensing arrangement while the others will be under a franchisee arrangement.

"However, the key to all our international associations will be exclusivity for India. This is so because we see ourselves not as mere retailers but as brand custodians," emphasised Mr Joshi.

Brandhouse Retails is a retail-focused company with an objective to identify, set up and manage exclusive brand outlets for SKNL brands as well as key international brands coming to India. "Additionally, it leverages its competencies in retailing, brand and consumer comprehension to usher in international brands," said Mr Joshi.

Home textile segment

Recently, SKNL forayed into the home textile segment with the brand Carmichael House. "The brand, with the entire range of bed linen, bath and table linen, curtains and upholstery, offers total home expressions," he said.

According to him, the brand will cater to the upper-middle and the premium-end of the market. The company signed on former Miss Universe and Bollywood star Sushmita Sen to endorse the brand.

The company is also planning to expand its retail network from the present 16 to 552 stores in five years. According to Mr Joshi, as a first step towards this goal, it will roll out 113 new outlets in the first year (2006-07). This includes 55 for Reid & Taylor, 32 for Carmichael House, four for global luxury brands, six for international super-premium brands and 16 for other brands in the mid-priced segment.

The funding for the expansion project will be a combination of equity, bank limits and internal accruals, said Mr Joshi.