Chennai, Oct. 7
TRIUMPH, the international women's innerwear brand, plans to set up its own manufacturing unit in India.
According to Mr Thorsten Allenstein, General Manager, Triumph International (India) Pvt Ltd, the factory will come up at Maramalai Nagar, near Chennai.
The company also plans to launch its premium men's wear brand, Sloggi Men, in India, shortly.
The company has a presence in India through Intimate Fashions, a joint venture with MAST Industries, the makers of Victoria's Secret, and the MAS Group. This factory is in Gudavanchery (on the outskirts of Chennai) and majority of Intimate Fashions' production is for Victoria's Secret and a small portion for Triumph, he said.
The new factory will be set on 14 acres and cover about 4 lakh sq ft. In the first phase, it would have a seating capacity of over 1,300. In the second phase, the factory will accommodate about 2,200 sewing operators. The factory will start commercial production by April 2007. However, Mr Allenstein did not reveal the investment in this venture.
He said that Triumph, a German company, has 16 factories all over the world and this would be the 17th. One of the main reasons for locating a factory in India was to be close "to the next big thing", meaning the next growth market after China. Organised retailing is expected to boom in the next few years and this will lead to the growth of brands such as Triumph, he said.
Mr Allenstein said the company had selected Chennai because of the proximity to airport, seaport and an investor-friendly Government.
He said the company is able to maintain the quality of its products in all the countries it operates in because all components are sourced centrally in Hong Kong. All the material is imported which increases the cost of the products.
About 80 per cent of the products manufactured in the factory in Chennai will be exported, while the rest would be for the domestic market, he said. The average price of the lingerie would range from Rs 400 to Rs 800.
Talking about the investment climate for apparel companies in Chennai, Mr Sanjay Chugh, Head, Agency, Trammell Crow Meghraj Property Consultants Pvt Ltd, an international firm of property consultants, which has facilitated some of Triumph's real estate requirements, said Chennai has become a preferred destination for apparel companies. A number of Sri Lankan companies were also relocating to Chennai to take advantage of the comparative cheaper real- estate costs.
Chennai also has a good labour base with experience in readymade garment industry, he said.