Royal Classic to export at cost

The Royal Classic Group (RCG), the Rs 275 crore Tirupur-based textiles exporter and garment retailer, is taking in its last gasps as it fights to stave off pressures from the appreciating Rupee.

The company which derives almost Rs 200 crore from exports, has resorted to exporting on a cost basis to tide over the US Dollar's depreciation.

R Sivaram, Executive Director, RCG said they will be able to sustain operations through this method till March, by which "we hope to have some clarity on how the Indian government will intervene to save our industries."

"We are in continous talks with our clients and are discussing price hikes for our exports, which may materialise to an extent eventually," he said.

The company, as many textile exporters in India are doing, is expanding its retail presence. RCG, which retails under the brand 'Classic Polo', presently has 53 showrooms of its own, besides retailing with multi-brand outlets.

"We have invested around Rs 11 crore so far and we are planning to open another 100 of our own showrooms across the West and Central India. We have tied up debt for the expansion and the retail sale is expected to grow 70 per cent year-on-year," Sivaram added.