Nitin Kasliwal-led Reid & Taylor, a wholly-owned subsidiary of S Kumars Nationwide Ltd (SKNL), is focussing on ready-to-wear garments, which it sees as driving its growth in coming years.
The company plans to launch is first company-owned brand, Kruger, and plans to hit the market with a Rs 1,000-crore IPO for domestic expansion, and to enter the US market by 2012.
“The fabric brands have a strong relevance in India but apparel brands are becoming important too,” said Nitin Kasliwal, vice chairman and MD, SKNL. “We are looking at high growth in both the fabric and the apparel business. We have been growing at a 35% CAGR from the last five years at Reid and Taylor.”
The company expects Kruger, which targets young professionals aged 21-40 years, to complement its flagship brand, the erstwhile James Bond-promoted Reid & Taylor.
“We are already strong in the domestic market and are looking at major expansion here. In the fabric business we have 24% market share and in the apparel business we have 12% market share and going forward we are adding our capacities in the fabric and the apparel business,” Kasliwal said.
“We anticipate Kruger to contribute Rs 350-400 crore sales over the next three years,” Kasliwal added.
The SKNL IPO is poised for market regulator SEBI’s approval and the company plans to use this money to fund its domestic expansion. It is planning to set up 160 exclusive brand outlets in the fiscal 2012.