Arvind to increase sales by over 50%

Arvind Brands plans to increase its sales by over 50 per cent, from the existing Rs 315 crore in financial year 2005 to Rs 485 crore during financial year 2006.

As an enabler for the growth, the company plans to adopt 'distributor model' for some of its products beginning with value for money brand "" Newport Jeans. Currently Arvind Brands has Arrow, Bay Island, Excalibur, Flying Machine, Lee, Newport, Ruggers and Wrangler brands.

Under the distributor model, the company is to sell products directly to a distributor who in turn replenishes stocks of retail stores/outlets throughout the country. Through this model, the company plans to efficiently manage logistics and manage it cost effectively.

Before rolling out the model, Arvind Brands has invested substantially in creating a centralised distribution centre in Bangalore backed by an high-tech logistics centre to monitor goods movement to distributors and then to retail outlets.

"For Newport Jeans, the company has set up 21 distributors throughout the country who in turn will service 2,000 outlets by end of 2005 and subsequently touch 6,000 outlets by 2006," said Ashish Pandya, business head-trade brands, Arvind Brands.

To strengthen its value for money platform, the company plans to target 18 to 22 year old students and 22 to 28 years working adults.

The company through a recent research realised that there existed three category of denim wearers "" The Wannabe cool, Bollywood Badshah and the Balanced Banda, said Pandya.

Of the three categories, Arvind Brands has chosen the Bollywood theme for promotion of Newport Jeans. Earlier, the company had roped in Akshaya Kumar for Ruf&Tuff Jeans.

"Youth are more fashion conscious than ever before. It's a growing awareness fuelled by stylish Bollywood movies. Newport is being positioned to lead this style revolution," he added.

"Here the customers are completely influenced by Bollywood fashion and imitate styles. As a step towards Bollywood theme for Newport Jeans, the company has signed up Saif Ali Khan as the brand ambassador," he added.

The company plans to run 'Saif ka Style Funda' campaign through print and supported by outdoor hoardings.

"Also as part campaign, the company through the brand ambassador plans to give youth lessons in style and fashion," said Pandya.

Newport sales in financial year 2004-05 is around Rs 36 crore and through 'Saif ka Style Funda' campaign plans to close financial year 2005-06 with higher sale at Rs 86 crore.