Mirza International makes rapid foray into retail

At a time when many manufacturing companies are going into retail, Kanpur-based leather major Mirza International has decided to follow suit by opening its 25th lifestyle store in Kanpur, the first in the city, as part of its drive to open about 50 such stores and take the number to 300 eventually.

Taking lessons from companies like Reebok and others, it decided two years ago to go into retail. This has now become one of its major activities.

The company started with stores in Dubai and Sharjah, and now has five stores in Delhi, and one each in many B and C category towns.

These stores, styled Red Tape, the international footwear brand of the company, had a large number of accessories like T-shirts, denim jeans, wallets, and belts and footwear for both men and women, said Shuja Mirza, vice-president (marketing).

"For this we have entered into an agreement with Arvind Mills, which supplies us most of the accessories. Our shoes are priced at Rs 2,000-2,500; wallets at Rs 500; belts at Rs 600; and denim jeans at Rs 900-1,600," he said.

By following the franchisee model, the firm has managed to keep its investment in fixed assets low. Its investment will be in the form of inventories and in the range Rs 60-100 crore.