BENGALOORU: Blackstone Group Lp funded Gokaldas Exports Ltd is looking to expand its wholesale business to achieve an all-India footprint and reduce inventory.
The move by India's largest garment exporter comes at a time when growth in overseas orders, particularly from Europe, is uncertain, prompting many textile firms to eye the growing domestic market.
"At any given point of time, we have about Rs60 crore of inventory and this (cash and carry) format will be an effective means to dispose of it," managing director Rajendra Hinduja said.
Gokaldas's apparel business has a requirement of around 4 million metres of fabric a month, some of which is piled up as inventory if there aren't adequate export orders.
Gokaldas Franchise, Cash and Carry Franchise,Alok Industries, H and A, franchise model, textile franchise, Apparel Franchise, Export Surplus Franchise,Blackstone Group.
The Bangalore-based firm, which employs 41,000 people, sees huge potential among small retailers and wholesalers, and plans to open large stores in Chennai and New Delhi after its 30,000 sq. ft wholesale store in Bangalore started doing well since it opened in late 2009.
In the past few months, the Bangalore shop has been earning about Rs 1 crore in revenue every month. This is set to double, said Hinduja.
The firm plans to open a 12,000 sq. ft store in Chennai's Nelson Manickam Road this year, followed by a 20,000 sq. ft shop in New Delhi.
"This format is new and pricing will be one of the key determining factors to decide whether it would work," said a Bangalore-based retail consultant, who declined to be named. "Exporters such as Gokaldas should keep the prices attractive to attract small retailers and shouldn't get lured by high margins."
Though cash and carry is uncommon among garment exporters, large firms such as Gokaldas and Mumbai-based Alok Industries Ltd have begun to use this route to better penetrate the local market.
Integrated textile firm Alok Industries launched its retail apparel brand H&A three years ago, but converted it into a wholesale format in December last year. "We have about 220 stores through a franchise model and will expand the network to 400," chief finance officer Sunil Khandelwal said.
"With the growth in India's organized retailing, exporters will increase their domestic business to 30% from the current average of 10%," said Prashant Agarwal, vice-president, Technopak Advisors Pvt. Ltd, a management consultancy.
Gokaldas expects that around 10% of its net sales of Rs1,100 crore would come from its cash and carry business in a couple of years.
According to Technopak, India's textile exports are valued at above $20 billion (Rs93,400 crore), while domestic textile and apparel business is $40 billion.
Like many of its counterparts, Gokaldas Exports reported a loss in the March quarter. It posted a net loss of Rs14.41 crore in the three months compared with a net profit of Rs4.72 crore in the year-ago period.
Since many textile exporters are incurring losses and their margins are under pressure, they are likely to venture into new businesses in the fiscal year to March 2011.
Gokaldas, for example, has also started a high-margin industrial textile business this year and has secured its first order of 100,000 uniforms from the US.
Tags:Gokaldas Franchise, Cash and Carry Franchise,Alok Industries, H and A, franchise model, textile franchise, Apparel Franchise, Export Surplus Franchise,Rajendra Hinduja, Sunil Khandelwal.
Source:Bharattextile.com
This Blog has been posted by Sparkleminds, A Franchise Consulting Company Based At Bangalore, India, Offering Complete Franchise Solutions Nationally and Internationally for more than a decade now.Visit www.sparkleminds.com for more details.
Showing posts with label Apparel Franchise. Show all posts
Showing posts with label Apparel Franchise. Show all posts
Tuesday, July 13, 2010
Tuesday, June 22, 2010
Shapoorjee Chandabhoy To Invest In Franchise Companies, Ace Tours and Liverpool Retail.
AHMEDABAD: Mumbai-BASED non-banking finance company (NBFC) Shapoorjee Chandabhoy Finvest Pvt Ltd (SCFPL) is planning to invest in two Gujarat-based small and medium-size companies — Ace Tour & Travel Ltd and Liverpool Retail India Ltd. The negotiations with both the companies that are into travel and readymade garment business are at the final stages and expected to conclude within the next few months.
If all goes as planned, SCFPL will pick up 26% stake in Ace Tour, a Surat-based travel company, for Rs 25 crore, and 20% in Liverpool Retail India Ltd, an Ahmedabad-based readymade garment retailing company, for Rs 15 crore.
Confirming the development, SCFPL president Farzan Ghadially told ET: “We are in the final stages of negotiation with both the companies. We see a lot of potential in both the sectors.” He further said the firm was looking at investments in the Rs 1 - 25 crore range, targeting small and medium size enterprises.
According to Liverpool MD Kailash Gupta: “The deal is yet to conclude. If done, we will be using the funds for further expansion.” Liverpool promoted by Vijay Singh Rathod and Kailash Gupta ventured into the readymade garment sector in 2001 and launched its fashion retail chain across the country under the brand name Liverpool in 2006.
Liverpool Retail recently added five family showrooms in Gujarat, Mumbai and Bangalore and plans to further scale up its presence in other parts of the country. “We intend to open up 50 family stores and also start our own garment manufacturing,” added Mr Gupta.
Currently, Liverpool sources its garments from third parties. With fresh capital infusion, it intends to source 25% of its garment requirements from in-house manufacturing. "It's a backward integration for us," he pointed out.
Ace Tour on the other hand wants to expand in western India especially in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra. Currently, the company has presence in four major cities of Gujarat and at a few locations in Maharashtra . Talking to ET, Raju Choksi MD of the Surat-based company said: “Once we are done with western India, then we will go for pan-India expansion.” Ace Tour & Travel was established in 1996 as a small family run neighborhood business, founded by Raju Choksi and Bharat Choksi. By 2008, the company expanded to seven branches. It now has 12 franchises in India and in the UK .
Tags:Invest In Franchise, Franchise Investments, Franchise Funding, Franchise Financing, Ace Tours, Travel Franchise, Raju Choksi, Liverpool retail, kailash gupta, vijay singh rathod, bharat choksi, Apparel Franchise
Source:22 Jun 2010, 1450 hrs IST,ET Bureau
This Blog has been posted by Sparkleminds, A Franchise Consulting Company Based At Bangalore, India, Offering Complete Franchise Solutions Nationally and Internationally for more than a decade now.Visit www.sparkleminds.com for more details.
If all goes as planned, SCFPL will pick up 26% stake in Ace Tour, a Surat-based travel company, for Rs 25 crore, and 20% in Liverpool Retail India Ltd, an Ahmedabad-based readymade garment retailing company, for Rs 15 crore.
Confirming the development, SCFPL president Farzan Ghadially told ET: “We are in the final stages of negotiation with both the companies. We see a lot of potential in both the sectors.” He further said the firm was looking at investments in the Rs 1 - 25 crore range, targeting small and medium size enterprises.
According to Liverpool MD Kailash Gupta: “The deal is yet to conclude. If done, we will be using the funds for further expansion.” Liverpool promoted by Vijay Singh Rathod and Kailash Gupta ventured into the readymade garment sector in 2001 and launched its fashion retail chain across the country under the brand name Liverpool in 2006.
Liverpool Retail recently added five family showrooms in Gujarat, Mumbai and Bangalore and plans to further scale up its presence in other parts of the country. “We intend to open up 50 family stores and also start our own garment manufacturing,” added Mr Gupta.
Currently, Liverpool sources its garments from third parties. With fresh capital infusion, it intends to source 25% of its garment requirements from in-house manufacturing. "It's a backward integration for us," he pointed out.
Ace Tour on the other hand wants to expand in western India especially in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra. Currently, the company has presence in four major cities of Gujarat and at a few locations in Maharashtra . Talking to ET, Raju Choksi MD of the Surat-based company said: “Once we are done with western India, then we will go for pan-India expansion.” Ace Tour & Travel was established in 1996 as a small family run neighborhood business, founded by Raju Choksi and Bharat Choksi. By 2008, the company expanded to seven branches. It now has 12 franchises in India and in the UK .
Tags:Invest In Franchise, Franchise Investments, Franchise Funding, Franchise Financing, Ace Tours, Travel Franchise, Raju Choksi, Liverpool retail, kailash gupta, vijay singh rathod, bharat choksi, Apparel Franchise
Source:22 Jun 2010, 1450 hrs IST,ET Bureau
This Blog has been posted by Sparkleminds, A Franchise Consulting Company Based At Bangalore, India, Offering Complete Franchise Solutions Nationally and Internationally for more than a decade now.Visit www.sparkleminds.com for more details.
Friday, June 4, 2010
Kewal Kiran Clothing Looks at Expanding Killer and K-Lounges Thru Franchising and Own Outlets.
Killer EBOs and K-Lounges to spread across India
Killer EBOs and K-Lounges to spread across India.Kewal Kiran Clothing makers of the brand Killer, one of India’s largest selling denim brands is on an expansion spree. By the end of this year they plan to push up their retail network to 200 stores. Currently, they have two retail concepts -- Killer exclusive outlets and K-Lounges. K-Lounges house all Kewal Kiran’s brands. Sandeep Varma, Vice President, Killer and Easies points out, “Our EBOs are around 700 to 2000 sq. ft. Most of these are franchisee owned. We have 120 K-Lounges and around 25 Killer EBOs. We want to take the number up to 50 Killer EBOs this year. We will also look at adding 30 K-lounges. So the total retail network would grow to 200 retail stores.” The K-Lounges are between 1,000 to 2,000 sq. ft. area. They have 20 company owned stores and the rest are franchisee outlets. The brand is also present in nearly 2,500 to 2,800 MBOs across India. They also have shop-in-shops with Pantaloons, Central, Shoppers Stop, Lifestyle, and Westside.
Killer’s biggest strength is its distribution network. As a brand, they already have a strong presence in Tier II-III cities. Varma a vows, “Our EBOs, which were earlier only in Tier I cities will now be in the Tier II and III cities as well. The market is growing in these cities and it helps if a brand is present in those markets. We are already there in Mangalore, Patna and Dhanbad. We will open in Bhubaneshwar and Cuttack soon. In some of these cities we are already present in the form of K-Lounges and we are looking at opening EBOs now.”Killer EBOs and K-Lounges to spread across India
The brand is also planning to introduce new products this autumn/winter. “We will add knits to our product portfolio this autumn/winter. These will be mainly cotton knits in the casual category. They will be a combination of heavy winter products and T-shirts. The collection would include sweat shirts, flat knits, jackets, etc,” explains Varma.
Kewal Kiran Clothing has another popular brand called Easies. The brand was launched to cater to the semi-formal, semi-casual concept of dressing. It is meant for a more mature customer. “Easies is trendy cotton trousers and semi-formal trousers. We have a whole range of shirts from casual to slightly formal shirts. We also have belts and are developing ties for the coming autumn/winter. Some 30-odd tie styles are planned,” says Varma. Easies is currently available in 700 to 800 MBOs.
As far as their production capacity goes, last year, they manufactured 1.4 million Killer pieces. “We do around 3 million pieces per year, which incorporates all the brands. Almost 80 per cent of the production is in-house. We are operating out of Mumbai, Daman and Vapi.
Tags:killer,k-lounge franchise, killer franchise, easies, denim franchise, Apparel Franchise, retail franchise, Store Franchise, top retail franchise, franchising apparel.
Killer EBOs and K-Lounges to spread across India.Kewal Kiran Clothing makers of the brand Killer, one of India’s largest selling denim brands is on an expansion spree. By the end of this year they plan to push up their retail network to 200 stores. Currently, they have two retail concepts -- Killer exclusive outlets and K-Lounges. K-Lounges house all Kewal Kiran’s brands. Sandeep Varma, Vice President, Killer and Easies points out, “Our EBOs are around 700 to 2000 sq. ft. Most of these are franchisee owned. We have 120 K-Lounges and around 25 Killer EBOs. We want to take the number up to 50 Killer EBOs this year. We will also look at adding 30 K-lounges. So the total retail network would grow to 200 retail stores.” The K-Lounges are between 1,000 to 2,000 sq. ft. area. They have 20 company owned stores and the rest are franchisee outlets. The brand is also present in nearly 2,500 to 2,800 MBOs across India. They also have shop-in-shops with Pantaloons, Central, Shoppers Stop, Lifestyle, and Westside.
Killer’s biggest strength is its distribution network. As a brand, they already have a strong presence in Tier II-III cities. Varma a vows, “Our EBOs, which were earlier only in Tier I cities will now be in the Tier II and III cities as well. The market is growing in these cities and it helps if a brand is present in those markets. We are already there in Mangalore, Patna and Dhanbad. We will open in Bhubaneshwar and Cuttack soon. In some of these cities we are already present in the form of K-Lounges and we are looking at opening EBOs now.”Killer EBOs and K-Lounges to spread across India
The brand is also planning to introduce new products this autumn/winter. “We will add knits to our product portfolio this autumn/winter. These will be mainly cotton knits in the casual category. They will be a combination of heavy winter products and T-shirts. The collection would include sweat shirts, flat knits, jackets, etc,” explains Varma.
Kewal Kiran Clothing has another popular brand called Easies. The brand was launched to cater to the semi-formal, semi-casual concept of dressing. It is meant for a more mature customer. “Easies is trendy cotton trousers and semi-formal trousers. We have a whole range of shirts from casual to slightly formal shirts. We also have belts and are developing ties for the coming autumn/winter. Some 30-odd tie styles are planned,” says Varma. Easies is currently available in 700 to 800 MBOs.
As far as their production capacity goes, last year, they manufactured 1.4 million Killer pieces. “We do around 3 million pieces per year, which incorporates all the brands. Almost 80 per cent of the production is in-house. We are operating out of Mumbai, Daman and Vapi.
Tags:killer,k-lounge franchise, killer franchise, easies, denim franchise, Apparel Franchise, retail franchise, Store Franchise, top retail franchise, franchising apparel.
Monday, December 7, 2009
Sachin Tendulkar ST all set to FRANCHISE Brand Sachin.
Sachin Ramesh Tendulkar is the God of Cricket and with a billion Indian fans and many more around the world, the ‘god’ now wants to go the FRANCHISE route to spread the gospel. Want more energy from a chocolate bar? Buy Sachin Tendulkar’s. Want more glucose from that good ol’ biscuit? Try ‘god’s own brand’.
Want better running shoes that can make you perhaps even fly? Try Adidas’ God, err ST line. Want a better cover drive? Join one of his cricket nurseries that will spring up from Ahmedabad to Adelaide. Want a better orgasm? We don’t know if he can help, but what the heck, if KamaSutra can pay a premium, the Mumbai Bomber might just oblige.
India’s greatest sporting icon is making sure that before he hangs up his boots, Brand Tendulkar is a sustainable multi-million dollar cash cow. Says Venu Nair, president (South Asia), World Sport Group: “Sachin is planning a brand overhaul. We are working with him to chalk out a strategy to make sure that the sustainability curve of his brand doesn’t dip suddenly after he stops playing. We are betting on him for at least the next 10 years.”
Here’s the plan: A mnemonic (ST) has already been designed and can be seen on Tendulkar’s bat. This will slowly be extended to cricket academies, sporting goods, apparel, chocolates, health drinks, energy bars, coaching books and manuals among others. “We are planning four zonal ST branded cricket academies in the next 12 months with one each in Australia and England,” reveals Nair. “In the next five years, we expect the ST brand to be worth $75-100 million.” But wait, the stumps are not drawn yet.
Source:ET 6 Dec 2009, 1945 hrs IST, John Sarkar & Amit Sharma, ET Bureau
Want better running shoes that can make you perhaps even fly? Try Adidas’ God, err ST line. Want a better cover drive? Join one of his cricket nurseries that will spring up from Ahmedabad to Adelaide. Want a better orgasm? We don’t know if he can help, but what the heck, if KamaSutra can pay a premium, the Mumbai Bomber might just oblige.
India’s greatest sporting icon is making sure that before he hangs up his boots, Brand Tendulkar is a sustainable multi-million dollar cash cow. Says Venu Nair, president (South Asia), World Sport Group: “Sachin is planning a brand overhaul. We are working with him to chalk out a strategy to make sure that the sustainability curve of his brand doesn’t dip suddenly after he stops playing. We are betting on him for at least the next 10 years.”
Here’s the plan: A mnemonic (ST) has already been designed and can be seen on Tendulkar’s bat. This will slowly be extended to cricket academies, sporting goods, apparel, chocolates, health drinks, energy bars, coaching books and manuals among others. “We are planning four zonal ST branded cricket academies in the next 12 months with one each in Australia and England,” reveals Nair. “In the next five years, we expect the ST brand to be worth $75-100 million.” But wait, the stumps are not drawn yet.
Source:ET 6 Dec 2009, 1945 hrs IST, John Sarkar & Amit Sharma, ET Bureau
Friday, December 4, 2009
Koutons to Add 100 Stores This Year
Retail apparel firm Koutons India, with an aim of expanding its presence in India, has mentioned that it will be coming up with 100 new stores across the nation. It also mentioned that it hopes that its revenue witnesses a growth of 35% during the 2009 – 2010 fiscal year.
"We are planning to open at least 100 more stores, taking our retail chain's strength to 1,500 stores’, said the Koutons Retail president Balvinder Singh while addressing the media on the margins of an event in New Delhi.
"We are on an expansion mode, and our franchise business model is doing well specially in tier II cities. This year even amid slowdown, we are expecting a growth of 30-35 percent," he added.
In 2008-09, the company had posted a turnover of Rs.1,000 crore.
Koutons is looking to consolidate its presence across the different regions of the country to have a penetrated national foot print.
"We are planning to open at least 100 more stores, taking our retail chain's strength to 1,500 stores’, said the Koutons Retail president Balvinder Singh while addressing the media on the margins of an event in New Delhi.
"We are on an expansion mode, and our franchise business model is doing well specially in tier II cities. This year even amid slowdown, we are expecting a growth of 30-35 percent," he added.
In 2008-09, the company had posted a turnover of Rs.1,000 crore.
Koutons is looking to consolidate its presence across the different regions of the country to have a penetrated national foot print.
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