Banking on its recent brand image makeover and retail store expansion, worsted suiting fabric player OCM India Limited is planning a foray into ready-made garments (RMG) by the end of fiscal 2012-13. To begin with, the company will launch formal wear including shirts, trousers and jackets, followed by semi-formal and casual in a phased manner.
"We have been gearing up for a major image makeover exercise including expansion of 40-50 exclusive stores in next three years from current 15 stores. Once we have established our image makeover, we are planning to introduce ready-made garments by end of FY 2012-13," said SK Singhal, chief executive officer, OCM India Limited while announcing the company's retail expansion in Gujarat. According to Singhal, only 15 per cent of fabric volume in India is consumed by the branded ready-made garment segment even as it grows in double digits.
Part of WL Ross & Co. LLC, which the PE player acquired for $37 million (roughly Rs 186 crore) in 2007 from Birla Group, OCM has initiated a brand revamp for the first time since its inception in 1924. Resultantly, the company's makeover exercise includes expansion of its production capacity, product range and retail presence in the country.
As part of the brand revamp, the company is targeting youths in the age group of 25-30 for its worsted, synthetic and cotton suiting fabric. "Our worsted suiting fabric is available in the price range of Rs 650 per metre and upwards. However, we have also introduced synthetic and cotton products at revised price range of Rs 300 per metre and upwards for the youths who plan to buy suiting for the first jobs," said Singhal.
In Gujarat, OCM is in talks for setting up exclusive stores in Vadodara, and Surat, apart from Ahmedabad. In next one year, the company is looking to set up four exclusive stores in the state.
What's more, OCM India Limited is eyeing to more than double the company's revenue to upto Rs 350 crore by end of fiscal 2012-13 from Rs 135 crore in FY 2011-12.
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Moreover, at an investment of Rs 15 crore, the company is also expanding its manufacturing capacity by 1-2 million metres per annum from current 7.5 million metres per annum. Sales volume for OCM is also expected to rise from current 5.5 million metres per annum to 6.5 million metres per annum by fiscal 2012-13.
The company exports about one-third of its volume to markets like the US and Europe.