Madura Garments mulls Russia foray

Apparel biggie Madura Garments is mulling a Russia foray. The Rs 400 crore branded player has already commissioned a study of the Russian market and will take a call over the next six months.

Vikram Rao, director, Indian Rayon and Industries, Madura Garments' parent company said, "About three to four months ago, we conducted and contracted a study in Russia. Efforts are on to determine the feasibility of such a foray."

If Madura does make the foray (which looks most likely) then it will be the company's second overseas market after West Asia which will contribute Rs 25 crore to Rs 30 crore this fiscal. Madura's presence there through the franchisee route extends back a few years.

Rao said that, markets like Russia and South Africa offer synergies and opportunities for an emerging brand player from India which must of necessity steer clear of the affluent western markets because of the significant brand building costs that would have to be incurred.

The company though has a near worldwide control of its brand bouquet. It owns the Louis Philippe brand worldwide, Allen Solly brand rights in all countries except North America, and Peter England everywhere except Ireland and UK. The company has the Van Heusen and Byford rights only in India. Besides, it has a homegrown denim casual label called SF.

The survey across Russia will find out the kind of merchandise that will sell, the retail ambience required, seasonal demand, price merchandise equation and fluctuation.

Added to it, it will estimate whether a brand building exercise is required or to go for an extensive distribution network? Also, it will point out the kind of partners and the franchisee format.

The study will assist Madura prioritise its future choices. As the domestic market still offers significant opportunity, the survey will seek to assess Russia's potential as an addition while retaining the business value already created.