Date:21/01/2004 URL: http://www.thehindubusinessline.com/2004/01/21/stories/2004012102420600.htm

Back Gokaldas may bring in Nautica smart casuals

Boby Kurian
Ratna Bhushan

Bangalore/New Delhi , Jan. 20

GOKALDAS Images Ltd, owners of Weekender - a major apparel export house, may bring premium smart casual brand Nautica into India through a licensing agreement with VF Corporation.

According to informed sources, the company was in the midst of firming up plans in this regard and the launch of Nautica could happen in the second half of the calendar year.

The Jagadish Hinduja-managed Gokaldas Images has been charting out plans to emerge as a significant player in the Indian branded apparel market as part of a forward integration strategy. It brought in Mr Govind Mirchandani, who set up the branded apparel business for Arvind Mills Ltd, to lead the branded apparel business.

Incidentally, VF Corporation,the world's largest apparel company, has been a longstanding partner of Arvind in India, and it was Mr Mirchandani who scripted that relationship that saw the entry of denim brands such as Lee and Wrangler into the domestic market.

When contacted, Mr Mirchandani said the company was in talks with six international brands and no final decision was taken on the choice.

The $5-billion VF Corporation took over Nautica Enterprises last year as part of the worldwide consolidation in the branded apparel industry. Nautica was established by renowned designer Mr David Chu in 1983 and soon emerged as one of the most visible brands in international fashion business along with Tommy Hilfiger and Calvin Klein. Most of Nautica's campaigns are inspired by the sports of sailing and boating, which is not surprising as Mr Chu started off using the Latin word for "ships" as the name of the organisation.

It must be mentioned that Indian apparel major Madura Garments had tried a licencing deal with Nautica in 1998, but both parties failed to clinch any conclusive agreement.

The entry of Nautica will see action hotting up in the super premium end of the Indian branded apparel industry. Arvind Mills has already entered into a joint venture to launch Tommy Hilfiger.

Currently, the branded apparel interests of Gokaldas Images is mainly in the kidswear and youth segment through brands such as Weekender and Weekender Kids, which are owned by a group company called Personality Ltd.

Gokaldas Images has a turnover in excess of Rs 350 crore with export manufacturing accounting for bulk of the revenues. The group has 18 manufacturing units, including many export-oriented units in and around Bangalore, employing approximately 9,000 workers.