Hakoba looks for acquisitions

The Rs 98 crore Pioneer Embroideries, embroidery fabrics and lace manufacturer, plans to either acquire or set up a greenfield embroidery plant in north India to service the retail rollout of their Hakoba brand there.

The decision to expand follows an announcement to acquire a embroidery firm in South Korea for Rs 20 crore.

Harsh Bassi, executive director, Pioneer Embroideries said during the launch of a Bangalore showroom, that the company is already evaluating several acquisition targets.

The acquisition or new venture will however be small having about 8 to 10 schiffle machines and several crochet machines.

This move will take Pioneer's capacity to over 85 schiffle machines and hoist them to largest user of crochet machines. Currently, the company is the second largest user of crochet machines with 440-odd in production .

He added that Hakoba, a wholly-owned subsidiary of Pioneer will make Bangalore the sourcing and storage south hub. "We will roll out Hakoba retail outlets across south India and Bangalore is best suited to manage logistics," he said.

Hakoba, meanwhile is on course to achieve Rs 12 crore turnover this year, up from Rs 4.5 crore last fiscal. The company, which focussed on women's wear till now has launched the men's range and is concept testing the embroidered accessories market.