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| Maxwell to invest Rs 10cr in new innerwear brand |
| Vinay Umarji / Mumbai/ Ahmedabad Jun 25, 2009, 00:36 IST |
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Maxwell Industries Limited, a manufacturer of innerwear under the ‘VIP’ brand, is planning to expand its product base. Towards this, the company is currently in talks with a UK-based premium undergarment brand to take up its master franchisee for India. Maxwell will invest around Rs 10 crore for launching the new premium brand in the retail market shortly.
Maxwell is engaged in the manufacturing and marketing of innerwear, lingerie, readymade garments, socks and other accessories. The company’s portfolio comprises VIP, Frenchie, Frenchie X, VIP Feelings, Lovable and Daisy Dee, which caters to the mass segment currently.
“The premium segment, led by the Jockey brand, is growing rapidly and there is a lot of scope in that. Although our current brand buffet caters to the mass segment, wherein we hold a market share of 24 per cent in the branded category, we now plan to enter the premium segment. We are in talks with a UK-based innerwear premium brand to take up their master franchisee for India and other countries,” said Sunil Pathare, vice-chairman and managing director of Maxwell Industries Limited
Post the launch, the premium brand is expected to yield revenues of about Rs 15 crore for the company.
Besides, Maxwell Industries plans to increase its production by 20 per cent after taking up the master franchisee for the premium brand. As of now, the company manufactures around 600,000 dozens per month, with a turnover of Rs 200 crore.
According to Pathare, the company will also look at entering the children innerwear segment in the near future. “The idea is to churn out products for the whole family,” said Pathare.
The company expects to garner a turnover of Rs 230 crore in the current financial year. With products already being exported to West Asia, Venezuela, Germany and the European countries, Maxwell is now targeting the Far East countries as well.
The innerwear market is estimated to be worth Rs 4,000 crore, of which Rs 2,000 crore is the branded section, which is growing at 20 per cent a year.
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