Date:14/02/2003 URL: http://www.thehindu.com/2003/02/14/stories/2003021402291600.htm

Business

Indian Terrain to make foray into knitwear

By K. T. Jagannathan

CHENNAI FEB. 13. The Chennai-based Indian Terrain Clothing Pvt. Ltd., a fully owned subsidiary of the Rs. 100-crore Celebrity Fashions Ltd., is contemplating breaking into the highly competitive branded cotton knitwear garment segment. The company will take the `outsourcing route' to produce its brand.

V. Rajagopal, Chairman and Managing Director, told The Hindu that his company had already tied up with another Chennai-based firm, Arvind Garments, for contract manufacture of knitwear garments in the latter's facility. He said Arvind Garments would have a dedicated line to produce these knitwear garments. The Managing Director said the Indian Terrain brand of knitwear garments would hit the domestic market few months hence.

Pointing out the enormous cost involved in brand promotion, he justified a brand extension under the Indian Terrain brand for knitwear garments as well. It has positioned itself as a premium brand of cotton men's work wear. It is set to clock a turnover of Rs. 16 crores in the current year, the second year of its existence. Mr. Rajagopal said the company would scale Rs. 25-crore sales turnover during 2003-04.

Indian Terrain has largely focused on the domestic market. Celebrity, however, has always trained its eyes on the international market and grossed a turnover of over Rs. 100 crores. It supplies garments to brands such as Timberland, Eddie Bauer and Kohis in the U.S. and to Diesel, Marlboro Classics and Kenzo in Europe.

Employing about 375 people, Indian Terrain has an equity base of Rs. 5 crores and a matching debt exposure. The MD said the company was proposing to infuse another Rs. 10 crores this year. The funds would be used to finance its knitwear foray and the fast coming up state-of-the-art facility in Porur to produce top-end trousers and shirts. The support machinery for the facility is being imported from Japan. The Rs. 10 crore investment would come partly through equity (Rs. 5 crores) and partly through debt funds. According to Mr. Rajagopal, it made economic sense to make Indian Terrain a national brand. The Indian Terrain products were now made available through 11 retail outlets of Shoppers' Stop and five Lifestyle stores. The company had its own stalls in Bangalore, Chennai and Hyderabad. Soon, it would have its own outfit in Delhi where it had bought space in an upcoming shopping complex.

In the past few months, the company strove to heighten brand awareness through a series of ad campaign on television. Having managed to create awareness, the company was proposing to re-jig its advertising strategy. It would now focus on popularising the Indian Terrain products through print media and local promotions, he said.