VIP Clothing Ltd., is exploring new export markets for its inner wear brands buoyed by the response in Dubai and Muscat. The company recently launched its premium offerings--VIP Regal and Frenchie Casuals in these two countries.

Exports account for Rs 20 crore plus out of the company’s turnover of Rs 230 crore for fiscal 2016-17. “We are present in the Gulf now, but plans are to reach Malaysia, Vietnam, SAARC nations in the near future”, said Yogesh Tiwari, Chief Executive Officer,

The leading inner wear brands company, earlier known as Maxwell Industries has being growing steadily with its brands--VIP, Frenchie for men and Feelings for women. Post changing the name it has launched into re-branding and coming up with premium brands.

Explaining the growth plans, Tiwari told Business Line that the strategy was to occupy the premium space and come up with products that emphasise on Fit (comfortable fitting for the customer). In this effort, it has come up with the Regal and Casuals brands, which will cater to the sensibilities of the Modern Indian man.

The company has launched the brands in Kerala earlier this year and the response was good. Today its offering to both Telangana and Andhra Pradesh and by end of fiscal will reach markets in Maharastra and Karnataka. The strong network of 330 distributors and over 30,000 retail points gives the advantage to accelerate growth, said Kapil Pathare, Director.

Getting into retail segment is also on the cards but in the next couple of years. Two Concept Stores have been opened in Mumbai under the name VIP Inners. Depending on the response a call will be taken to push the business, he added.

To give a fillip to these efforts, the company has set in motion a Rights Issue to raise Rs 50 crore to meet the working capital expansion needs. “We ave file the draft offer and are waiting for the last step of getting SEBI nod. The funds will be used for expansion and branding”, Tiwari said.

While Jockey is the leading brand in the premium segment, VIP Clothing is hoping to gain good share and overall grow at 20-25 per cent CAGR in the next three years. The domestic market is estimated to be around Rs 20,000 crore with several players.

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