House of Pearl may buy retail chain abroad

House of Pearl Fashions, the ready-to-wear apparel company, is planning to acquire either a retail chain or an apparel brand overseas.

It was exploring the UK and the USA markets.

Top official sources said the company was going to invest Rs 40 crore in this acquisition which should be finalised by the end of 2007.

The company is looking at acquiring a US or UK unisex brand catering to people between 15 and 30 years of age.

"This would be a premium brand that the company is trying to acquire. When we bring it to India, it would be at par with the price bands of brands such as Wills Lifestyle or Color Plus. For example, when we bring the international brand to India in 2010, shirts would be priced between Rs 700 and Rs 1200," said the source.

The company is also trying to acquire a retail chain of US or UK, in case the brand acquisition does not work out.

The retail chain should be spread over 50-150 stores across Europe. This too would be finalised by end-2007.

Post-acquisition, the company plans to run the brand or the retail chain in Europe for 2 years, before bringing it to India in 2010.

The company is also planning to roll out its own exclusive stores, christened 'Forever New', by end-2007.

"We are planning 10 stores, spread over 5,000-10,000 sq ft each, by end-2007 in Delhi, Chennai, Calcutta and Bombay. We are looking at setting up stores in malls or highstreets. We are yet to decide on the locations," informed sources. The company is going to house its 'DCC' and 'Koolhearts' brands in its exclusive stores.

The brands were launched in US and UK about 3 years ago and are sold through 48 retail outlets.

The DCC brand stocks apparels and accessories for women in the 30-45 years of age whereas Koolhearts is for women of 15-25 years of age. Around 30 per cent of these brands would stock apprels for men and the rest for women. Around 80 per cent of the range would be casualwear and the rest formals. The Forever New outlets would stock 60 per cent apparel and 40 per cent shoes and accessories.

The company is also planning to import merchandise from Bangladesh and China and sell them in India under its existing brands.

The company is also planning brand ambassadors for both their brands - women who would fit the casual brand image in accordance with their age - to build an image for the brands in India.

When contacted, Pallak Seth, vice-chairman, House of Pearl, said, "We are investing Rs 70 crore in the retail project in India."

"About 80 per cent of the turnover comes from purchase of casualwear in US and UK and the trend is same in india. We would try to cash in on youth fashion in India with our existing brands," Seth added.