Companies

OCM India sews up fabric of ‘Resurgence'

Our Bureau Ahmedabad | Updated on November 14, 2017 Published on March 19, 2012




OCM India Ltd on Monday said it plans to infuse Rs 80 crore to modernise technology and upgrade equipment over the next four years. This is to revamp its brand for the first time since 1924 as part of its “Resurgence” campaign. Once owned by the Birlas, the Amritsar-based company became part of the US-based, $1-billion private equity firm WL Ross & Co. LLC, in 2007. It is now investing about Rs 15 crore an annum on modernisation and revamping, said Mr S K Singhal, Chief Executive Officer, here.

The company is gearing up for a major image makeover apart from expanding its production capacity and product range. It will increase its retail presence through 45 franchisees and dealers in three years and open outlets, including exclusive stores, across India.

The company has, over the last one year, seen its turnover increase by 33 per cent, from Rs 153 crore to Rs 200 crore in 2011-12. Its turnover is expected to increase to Rs 350 crore in the next three years.

OCM also has a Rs 15-crore marketing-advertising plan for the next fiscal.

As part of its “Resurgence” exercise, OCM had commissioned Leapfrog to conduct a market research across eight cities. It now has a new logo and invested Rs 33 crore in overhauling work at all the levels. As a result, Mr Singhal said, OCM is no longer seen as a winter season tweed-producer.

It has introduced new products for summer as well, targeting the youth in the 25-35 years of age in Tier-II and III towns and cities, with its new summer collection 2012. It has also entered the high-end suiting segment by expanding premium men's suiting range and cotton shirting, including suit-lengths worth Rs 15,000 to Rs 25,000 apiece.

OCM's production capacity has been enhanced to 7.5 million metres an annum. Its production has increased from 4.2 million metres to 5.5 million metres in 2011-12 and is expected to be 6.5 million meters next fiscal.

Published on March 19, 2012
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