IndiaRetailBiz

“Till the time business is restricted to manufacturing, the product is simply treated as a commodity. So, we decided to add some brand value and get into retailing of apparel also.” — Yash Birla, Group Chairman.

Birla Cotsyn, a textiles company of the Rs 2,300 crore Yash Birla group, is foraying into apparel retailing across India. Having already begun research on branding and positioning of its retail initiative, the group is hoping to launch its retail initiative by early next year, reports DNA. Initially, the group is looking at investing Rs 33 crore to set up 20 stores in the mid-price segment. The products would also be made available through multi-brand outlets.

The group is also looking at options to introduce products in other price segments.

“A particular brand can be made available at different price levels and in different formats. Take Armani, for example,” said Yash Birla.

The move to create a brand and retail has been taken with a view to improve margins as branded apparel offer hefty margins ranging between 40% and 200%. The move will also help the group to integrate and consolidate all its textiles related businesses.

“If one is not present in the complete chain, then the business is not very profitable and so we have decided to enter in branding and retailing as well. Our new facility will be able to manufacture one lakh pieces a month,” said K K Baheti, President and CEO, Birla Cotsyn, while explaining the rationale of foraying into retail.

The group has also initiated the exercise of integrating its health and wellness ventures under one brand. The group has decided to also expand its presence in the education space.