Bagging new business

Like garment exporters, leather goods manufacturers who earlier focused on the foreign markets are now turning to the domestic retail sector. Chennai-based Tritan Leather Works Pvt Ltd has recently launched its line of leather goods called Basta for the domestic market.

"Our focus over the last few years was on ramping up our manufacturing capacities," informs Ajay Bawa, managing director, Tritan Leather.

The company has six manufacturing units in Chennai that makes one million pieces of leather goods (such as travel folders, toilet bags, duffel bags and belts) and 400,000 women's handbags in a year. The company supplies to global brands such as Levi's, DKNY, J Crew and Tano among others.

"Earlier this year we decided to venture into the domestic market with a lifestyle-oriented portfolio," says Peachy Bawa, wife of Ajay and co-promoter of Tritan Leather. Their Basta line, besides the existing products, includes leather coasters, mats, cushions, rugs and leather woven chairs.

"Our target consumer is the upper middle class Indian who wants to spend on lifestyle products," she adds.

According to the couple rising disposable incomes and growing awareness of global style trends among Indians were the prime reason behind venturing into the retail sector. Prices for their products begin at around Rs 800 (for a wallet) and touch Rs 25,000 (for a leather rug or leather woven chair).

For the first year the Bawas want to limit their presence to outlets of fashion house Ogaan in Delhi, Mumbai and Kolkata. There are plans to retail from the lifestyle store Evoluzione in Chennai later this month.

"We're testing the waters. This is our first foray into retail and we don't want to spread ourselves too thin," explains Peachy. Talks are on to participate in a home show in New York next year.

According to Ajay investments in the Basta line has been minimal as the infrastructure was already in place. He sees Basta doing business worth Rs 50 lakh in its first year. Tritan Leather did business worth $5.5 million last fiscal. However in the first six months of this fiscal their business has doubled to touch $11 million.

"There has been a general upswing in outsourcing products from India this year. But more than anything else we have a new client, Humphrey's Accessories who has helped our business," he informs. Humphrey's is a division of US-based Randa Corporation, one of the world's largest men's clothing accessories company.