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Fabric maker S Kumar to venture into retail market

30 Jan '06

2 min read

Leading textile company S Kumars Nationwide (SKNL) has set up a 100 percent subsidiary, Brand House (BHL), to make an organised foray into retailing.

The textile major has earmarked an investment of close to Rs 90 crore over the next two years for this new business.

Apart from setting up Reid & Taylor stores, BHL will set up exclusive stores for them across the country.

Reid & Taylor chief and former Arvind head honcho Govind Mirchandani will head BHL.

“With retail as the mantra, it's a logical extension of their core business of textiles,” Nitin Kasliwal, MD, SKNL, said. He, however, declined to name these global brands.

By getting foreign brands here, the company also hopes to be a supplier of fabric to these companies like in the case of Reid & Taylor Scotland, which is outrsourcing from Reid & Taylor India.

The company has roped in KSA Technopak as its consultant which is spearheading Brand House' talks with some 18 global brands. BHL intends to open about 100-120 exclusive stores dedicated to each foreign brand in two years.

It is also targeting to set up 250 exclusive stores of which 120 will be company-owned stores.

The rest will be run by franchisees. Apart from global brands, BHL plans to launch its 12 own brands in the next four years.

Overall, SKNL is looking at an investment of Rs 400 crore over the next four years for expansion and diversification projects to tap the growingopportunities in the post-quota regime.

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