Samsonite expects to double sales in India every two years
The world's leading luggage maker, Samsonite Corp, hopes to double its turnover in India every two years, a top company official said.business Updated: Aug 22, 2010 12:44 IST
The world's leading luggage maker, Samsonite Corp, hopes to double its turnover in India every two years, a top company official said.
The company generates an estimated revenue of Rs 360 crore in the country annually, contributing about 6 per cent to its global sales of $1.3 billion (about Rs 6,060 crore).
"In the first half of the current year, our business grew at 52 per cent in India. We hope to grow at a similar rate every year and double the turnover every two years," Samsonite South Asia Pvt Ltd Managing Director Subrata Dutta told PTI.
The firm had set up shop in India about a decade ago and the country currently contributes 6 per cent to Samsonite Corp's global sales.
"Samsonite's global annual sales are estimated to be around $1.3 billion and India accounts for about 6 per cent," he added.
India is also a major sourcing hub of the company, housing one of the two global production sites for Samsonite Corp.
"The company globally has two production units, one in Belgium and the other one in Nasik, Maharashtra. Of the total production done here, 15 per cent is consumed by India and the Middle East and the rest is exported," he said.
The company produces items, including big luggage bags, footwear, business bags, handbags and belts at Nasik.
Dutta also said currently, Samsonite is working on expanding its retail reach in India across formats.
"We operate 200 stores across formats, including company -owned and franchise-owned. The plan is to add 100 new stores by December, 2012," he said.
The company had introduced its footwear range under the same brand name a couple of years ago. It plans to set up exclusive stores for the category.
"We are also setting up concept stores to sell products range excluding the big luggage bags such as footwear, business bags, handbags, belts, shoes and other accessories," Dutta said.
According to Dutta, the branded luggage market in India is currently estimated at Rs 1,400 crore. VIP and Safari are other major players.
"Samsonite has 33 per cent of the total market here," he said.
Samsonite operates in the luxury category through its 'Black Label' brand, while the 'American Tourister' brand provides affordable products to value-conscious consumers.