The Hindu Business Line : Royal Classic plans more outlets in South

These outlets, on a franchisee model, will sell the Classic Polo brand of T-shirts, shirts, trousers, denim wear and jackets as well as `Smash' innerwear.

Investment

Around Rs 20 lakh would be invested on each store, said Mr R. Sivaram, Executive Director, Royal Classic Group.

The outlets will be in two formats — studio (500-1,000 sq ft) and lounge (1,000-2,000 sq ft). Primarily into exports, the Rs 225-crore company wants to give a greater thrust to domestic retailing.

It entered the domestic retail market in 2003 with the launch of Classic Polo; the company in 2005 acquired the Mumbai-based innerwear brand Smash.

Domestic market

"With the rupee gaining rapidly, profit margins from exports have thinned down. We are finding the domestic market more lucrative now. It will give us better control and profit," said Mr Sivaram.

To double revenues

Last year, the Classic Polo brand contributed about Rs 30 crore to the company's turnover, while Smash garnered revenues of Rs 5 crore. "This year, we hope to double the revenues from Classic Polo; we also expect to close this year with Rs 20 crore from Smash," said Mr Sivaram.

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