Mahindra Intertrade (MIL), a wholly owned subsidiary of Mahindra and Mahindra, has decided to acquire the sales, distribution and marketing rights of a series of international brands in the kids segment this fiscal.
The company has already launched the Lego brand of toys. It plans to follow this up by launching soft toys from the Walt Disney stable and leisurewears and accessories from Aqua.
Disclosing this, Parag S Dani, head of marketing services of Mahindra Intertrade, said the company expected to launch a complete range international brands for kids very soon.
"These would include among other things gifts, novelties, sports gears and apparels," Dani said.
The company also plans to introduce a host of other products, including menswear, beautycare and healthcare brands in the coming financial year.
Although Lego toys would be outsourced from Denmark, MIL has planned to tap Indian manufacturers to source most of its products.
"Almost 70 per cent of our products would be sourced from Indian vendors. In such cases, we will acquire the entire back-end management of the brand and in return pay a royalty to the parent," Dani said, adding that entire chain, from procurement of raw material to finished product would be looked after by MIL.
"The products have to meet the specific standards required by companies. We have to maintain that. MIL is spending a considerable amount to upgrade its existing facilities," company sources disclosed.
Such arrangements would give MIL the flexibility to adapt to the immediate needs of the market and also support better inventory management.
However, MIL would also be looking at manufacturing bases at China, Sri Lanka, Bangladesh for importing the products.
The company expects lower duties on imports from SAARC countries vis-
