 "US Polo will be a Rs 1,000 crore brand by 2018: Arvind Ltd CEO")
and will invest Rs 250-300 crore to expand the retail foot print across the country to support US Polo brand.
Alok Dubey, chief executive officer - Lifestyle Brands Division, Arvind Lifestyle Brands Ltd, who was in Chennai to inaugurate new flagship store of US Polo, said that during the first six months Arvind Ltd has reported a 20-25% growth, which was driven by US Polo brand.
In 2015-16, US Polo realisation would be around Rs 600 crore, as compared to Rs 400 crore last year.
"By 2017-18 it (US Polo) would be a Rs 1,000 crore brand", said Dubey, who claimed that the brand would be number one, among the men's brand in the leading major multi-brand retail outlets including Lifestyle, Shoppers Stop etc.,
To support the target, Arvind Ltd will expand US Polo's point of sales to 1,700 from the current 1,000 and exclusive stores will be increased to 400 from 220.
The company would take up the franchisee route for most of the new stores. The total gross working capital would be around Rs 250 crore by the time the brand reaches the Rs 1000 crore mark. At present out of the 220, around 40-45 stores are company owned.
Dubey said, the brand also seeing very good growth beyond metros including tier II and III cities, which contributes nearly 40 per cent of the sale.
The company tried test marketing shoes under US Polo brand and it has seen some positive feedback. So far around Rs 40 crore was clocked and the target set was Rs 100 crore. Similarly for other accessories including inner wears, watches (which will be launched before Diwali), bags the company set a target of around Rs 200 crore by 2018 from the current Rs 60 crore.
The company also got licensing agreement from Elle, a kids-wear brand and it hopes this segment can bring another Rs 200 crore in the coming years.
On e-commerce, he said, though it is evolving the company don't believe in the current face and phase of e-commerce. "The current e-commerce phase will kill the brand so we are not aggressive on it."
Commenting on Flying Machine, which is company owned brand, he said at present it is the second largest brand for Arvind Ltd and its a mass brand. The company hopes to clock Rs 300 crore from this brand as compared to Rs 225 crore a year ago.
