Royal Classic to launch infant & kidswear brand

To set up 2 more exclusive stores in Hyderabad

Tirupur-based Royal Classic Group, which has the 'Classic Polo' and 'Smash' brands under its belt, will be launching a new brand in the infant and kidswear section.

Besides, the Rs 250-crore group will also be launching active-wear under the 'Smash' brand of products and will be foraying into denims in the men's wear category (Classic Polo).

The 100 per cent vertically-integrated textile major will also be setting up two more exclusive stores in Hyderabad by the end of this year. The company is also looking at Vijayawada as an option for future stores. At present, it has set up one store each in Hyderabad and Visakhapatnam.

Speaking to Business Standard, Anand Aiyer, domestic brand head, Classic Polo, said that the group is looking at diversifying into kids and infant wear in the later part of 2006.

"Besides, we will also be launching active-wear "� swim and gym wear "� in the next phase of expansion. We will also launch denims as a category under our flagship brand "� Classic Polo soon," he added. While Classic Polo is a men's wear brand, Smash is for innerwear.

Classic Polo entered the domestic market four years back. The group has, however, been in the exports business since around 12 years.

From the domestic market, the group is expecting revenues of Rs 180 crore by 2007-08 from the three brands that it plans to have by then.

While around Rs 60 crore will be from Classic Polo, Rs 100 crore will be from Smash and the remaining Rs 20 crore from the new brand in the kids and infant wear that it plans to launch next year.

Classic Polo garnered sales of Rs 16 crore in 2004-05 and according to Aiyer, it is likely to cross Rs 35 crore in 2005-06.

"We are looking at sales of Rs 20 crore from Smash this year," he added. The Classic Polo brand has a marketshare of 20 per cent in the branded knitwear category.

"This year, our focus will be on increasing our retail sales. We are looking at having 20 exclusive stores by the end of December. We have already set up nine stores and have signed up eight others as well. We are planning to have two more stores in Andhra Pradesh during the same period," Aiyer said.

"We see Andhra Pradesh as a potential market for our growth. However, it is also volatile as the tastes of the people keep changing here," he added.