Madura Garments eyes 3-fold growth next year
MADURA Garments expects to see its business venture with global lifestyle brand Esprit grow three-fold next year as higher salaries and glitzy shopping malls boost demand for premium apparel brands. “This (fiscal) year we’ll post sales of about Rs 20 crore. Next year, we are looking at a figure of about Rs 70 crore as the demand (for premium brands) is growing sharply,” Aditya Birla Nuvo director Vikram Rao said on Friday. Although the global brand is also bullish about the growth in India, it said it would count India and China as its main markets only after it sees the trends for the next five years. Esprit is still focused on Europe and North America as its growth areas. Madura Garments, a unit of Aditya Birla Nuvo, formed a partnership with Esprit, to retail the global company’s products in the women, premium and accessories segments in India. The venture has over 10 stores in India, which will be increased by an additional 15 stores, in the next two years, said Madura Garments president Hemchandra Javeri. “The business will be driven by a combination of new spaces and growth in like-tolike stores,” he added. The $5-billion Esprit is present in 44 countries and manages over 640 outlets globally. “We are optimistic about India , but honestly, we are here for the long term and would like to wait for some more time (to see the growth),” said Esprit chairman Heinz Krogner. A surge in manufacturing and services sectors in the world’s second-fastest growing economy after China, has led to a demand for premium lifestyle products. The trend has also fuelled a growth in the retail sector. According to Morgan Stanley, India’s organised chain-store retail industry is at an inflection point. We estimate it has the potential to deliver around 32% CAGR (compounded annual growth rate) over the next 10 years.” Madura Garments had joined with Esprit to boost its brand portfolio in segments such as women’s ready-to-wear, premium relaxed clothes and accessories. The move aims to offer Indian shoppers all the latest merchandise at prices “almost similar to those retailed in Dubai or Hong Kong and at the same time,” Mr Javeri added.
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