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Italian luxury apparel maker in JV with Tirupur firm
Apr '12
Canclini Tessile, an Italian luxury apparel producer, has entered into a joint venture partnership with Emperor Textiles, a firm based in India's Tirupur, to stitch its shirts.

The Italian firm, which is famous for its fabrics across the globe, produces shirts which are vended under the brand name Via Montenapo.

Karthekeyan Palaniswamy, Managing Director of Emperor Textiles, engaged in manufacturing of home textiles, fabrics and garments, said pursuant to the JV, a new firm 'Italian Luxury Garment' will be established with equal share of both Canclini and Emperor.

Emperor presently produces around 8,000-10,000 shirts per month, however, following the new association it would be required to enhance its capacity. Hence, it plans to set up a production unit in Tirupur to produce Italian fabric for direct consumption, Mr. Palaniswamy said.

The JV plant would have a capacity to produce three million metres of fabric, which may be enhanced to six million metres at a later stage, he said.

Emperor, with an annual turnover of around Rs. 600-700 million, is one of the few Indian players in high-end market and supplies to leading brands like ITC, Color Plus and Philippe. Also, it ships its merchandise to Europe and Australia.

Simone Cancilini, President of Cancilini Tessile SpA, said they foresee meagre growth opportunities in the European market owing to the current debt crisis and hence, the company has decided to shift its focus to BRIC countries.

After Europe, India is the highest growth potential offering market for Canclini's fabric and retail business and thus it became their first choice, Ms. Simone said.

Based on the success in Indian market, Canclini intends to penetrate in other BRIC countries, she added.

The new JV firm has already linked up with Kimaya for marketing and sales of its men's shirts range through its Bangalore outlet, and is also holding consultation with 30 other retailers in India to sell its fabrics.

Ms. Simone said that setting up a shop-in-shop with Kimaya would help them test the market, but as they enter metros, they may even look at experimenting with standalone outlets.

The firm intends to set up 25 shop-in-shop stores in India over the next two to three years, she stated. She added that later on they may even consider offering fabrics in stores.

Fibre2fashion News Desk - India

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