Hidesign, the Pondicherry-based branded leather goods manufacturer, is on the look out for a strategic partner who would strengthen its brand presence in the Europe and North American markets. Simultaneously, the company has decided to exit from sub-contract garment exports in a phased manner over the next three years.
At present, sub-contract garment exports contribute 30 per cent of the company's turnover of Rs 44 crore. International sales of its own branded leather goods constitute 50 per cent of the turnover.
Dilip Kapur, president, Hidesign, said the company would prefer to have a strategic partner who has substantial distribution and retail network in Europe and North America.
Announcing Hidesign's expansion into Singapore, Malaysia and Russia, he said: "We are looking at increasing our shelf presence in atleast a dozen countries in the next three years. In this direction, we have decided to focus on emerging economies which offers us opportunity to become market leaders". Apart from the above mentioned list, Hidesign has presence in 11 countries.
The current expansion into Singapore and Malaysia involved an investment of Rs 5 million, and the company expects to generate an annual revenue of Rs 1.5 crore in the next 12 months from these markets, with subsequent growth rate of 20 per cent. In the domestic market, the company plans to open additional shops in Bangalore, New Delhi and Mumbai.
