Chaya Garments plans to open store in Middle East by 2005

While the textile and garments manufacturers are looking at exports seriously with MultiFibre Agreement (MFA) slated to be abolished by this year-end, the Rs 80-crore Chaya Garments expects to focus largely on the Indian market.

The Bangalore-based company is planning to expand its 'Stori' brand of men's accessories next year.

Chaya Garments will open an exclusive store for its Stori brand in the Middle East by mid 2005. The company also plans to enter the Singapore, Sri Lanka and Germany markets by the end of 2007. The company, which at present has eight exclusive Stori stores in India, expect to scale up the number of stores to 40 in the next two years.

The brand accounted for Rs 18 crore of the company's total turnover in 2003-04. The price of the brand ranges between Rs 895 and Rs 2,000.

Speaking to Business Standard, Omprakash Bhaiya, chairman and managing director of Chaya Garments, said: "There is a huge potential in the domestic market which we plan to tap rather than vie the export market. Our exports contribute only five per cent of the turnover. The Indian premium ready-made market is estimated to be around Rs 15,000 crore."

"We expect to close the current financial year with a turnover of Rs 100 crore. Stori, a premium trousers and shirts brand is estimated to be the growth driver contributing 25 per cent of the total turnover," Bhaiya said.

Bhaiya said that his company has been receiving enquiries from few multinational companies on infrastructure sharing of warehousing and enterprise resource planning. He, however, declined to spell out further details.

Chaya Garments has a production capacity of 1,800 pieces a day and a warehousing capacity of 1.5 lakh units. The company has a manufacturing plant with a capacity of 1,500 pieces a day and have taken four plants on lease that have a capacity of 800 pieces a day, he said.