Jagannath Textile to open 100 exclusive outlets

Coimbatore-based textile manufacturer Jagannath Textile Company Ltd would invest Rs 50 crore in setting up 100 exclusive brand outlets (EBOs) for its men's innerwear brand Crusoe, in next five years. The company would launch its first such outlet in Coimbatore, on Sunday, April 3, 2011.

The company would roll-out 10 outlets with an investment of Rs 50 lakh per store, across cities including New Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Kochi, Kolkata, Pune, Chandigarh and one more in Coimbatore, in the fiscal year 2011-12, according to Ramesh Kumar Tibrewal, managing director, Jagannath Textile Company Ltd.

“We are planning to invest around Rs 50 crore for next five years to set up 100 EBOs. We will be restricting ourselves in the premium segment of men's innerwear market, which is at Rs 800 crore at present and poised to grow at 30 per cent rate in next five years,” said Tibrewal. The investment would be from internal accruals.

The total market for branded men's innerwear is around Rs 5,500 crore in four segments, super premium, premium, medium and economy segments apart from the unbranded segment. The branded segment is growing at a rate of 20 per cent. Out of this, Rs 800 crore is the market for premium segment. It is poised to grow at 30 per cent for the next five years and we would be restricting ourselves to the segment, he said.

Launched in May 2009, Crusoe brand of innerwear targeting customers in the age group of 16-35 years, is currently marketed in south India and recently launched in Ahmedabad and Maharashtra. The company expects to complete pan-India launch of the product by July 2011.

By crossing sales of Rs 5 crore in the first 10 months of launch and expected to reach Rs 12 crore sales in the fiscal 2010-11, the company targets Rs 150 crore revenue from the brand in next five years, he added.

The company, which has its plant near Coimbatore, has clocked a turnover of Rs 350 crore in the fiscal 2009-10.