Madura bets big on accessories biz for growth

Madura Garments, a part of A V Birla group's Indian Rayon and Industries, fuelled by its aggressive retail expansion of retail space is witnessing CAGR of 30 per cent increase in its topline and 60 per cent growth in its profits. It is also seeing a greater prospects in the sale of its accessories line.

"With more and more consumers looking at accessories as part of lifestyle brand, we are expecting it to grow from the present 8 per cent to about 15 per cent," says Hemachandra Javeri, president, Madura Garments.

Citing reasons for the increase in its revenues, he said, "This is because of the retail expansion of our various brands and also because the brands have been able to get more consumer franchisee."

He added that profitability is increased by brands like Peter England which comes in the mass segment which is present in stores in urban and semi-urban areas.

Aiming at further increasing its topline, the company is planning its retail expansion for all its brands. At present, Peter England is sold at almost 2,000 outlets whereas Louis Philippe is sold at about 450 points. The company is planning to further increase the sales of Louis Philippe in semi-urban areas also.

Javeri said that "more and more consumers are buying more often than in Diwali" or any other festival season and this can also be attributed to the increase in sales of its products.

He said that the garment retail segment is a fiercely competitive market with low barriers for entry. Substantiating this he said, "only 10 per cent of people buy branded apparel and 15 per cent buy ready to wear apparel."

Madura Garments, Indian Rayon's garments division, during the second quarter ended September 30, 2005, had registered 28.9 per cent rise in revenues.