Ties up with two Italian design houses
The companyis currently expanding its spinning, garment and home textiles capacities.
Funds havecome from internal accruals and loans from the technology upgradation fund scheme.
Mumbai, Nov. 25
"We are in talks with two German companies for a marketing collaboration for our home textiles. The joint venture should be finalised by January 2007," said Mr K.C. Agarwal, Joint Executive President, Sutlej Industries.
Sutlej is looking for a two-way tie-up, whereby the two companies will lift products (not made by them) from each other and market them in their respective countries. Home textiles are available through multi-brand outlets under the brand name Birla Home Décor. Apart from having an in house design team of 10-12 designers, the company has also tied up with two Italian design houses.
In the garment segment, Sutlej has launched two brands of trousers for men Royal Legacy and Club Milano. "We have started test marketing them in Bangalore and Hyderabad. Afterwards, we will take them to other cities," said Mr Agarwal.
He added that the company is not planning to get into retail at this point of time. "The trousers will only be sold in multi-brand outlets. There are no plans to open any exclusive brand outlets," he said. Ladies wear is also on the cards with the company manufacturing formal trousers for women on a trial basis.
"We are also starting to manufacture casual trousers and jackets and this should add another Rs 250-300 crore to our turnover," said Mr Agarwal.
The company is currently expanding its spinning, garment and home textiles capacities with a total investment of Rs 300 crore. Funds have come from internal accruals and loans from the technology upgradation fund scheme.
"All expansions will be complete by 2009 and we expect to reach a turnover of Rs 1,000 crore by then," said Mr Agarwal. For the year ended March 2006, the turnover was Rs 435.91 crore. Shares of the company closed unchanged at Rs 102.65 on the BSE on Friday.