Shivrams Buys 14% Nri Stake In Crocodile

The Coimbatore-based Shivrams Associates has bought over 14 per cent equity of apparel and accessories firm Crocodile Products from non-resident Indians (NRIs) for an undisclosed sum.

Crocodile Products is a joint venture between the Singapore-based apparel and accessories company Crocodile International and Shivrams Associates.

With the buyout, Shivarms Associates' equity in Crocodile Products has gone up to 65 per cent from 51 per cent. The remaining 35 per cent is held by Crocodile International.

Venkatesh Sivaraman, managing director, Crocodile Products, said: "Following the acquisition of the 14 per cent stake held by NRIs, our (Shivrams Associates) stake in the company has increased from 51 to 65 per cent."

He refused to give details relating to the cost at which the stake was acquired. However, he said: "We paid a 30 per cent premium for the stake."

Sivaraman said Crocodile International still had an option to hike its stake to 40 per cent in the Indian arm. The company has so far invested around Rs 7.5 crore in the local operations.

Crocodile launched its range of apparels in India sometime early in 1998. The company's turnover rose from Rs 7.8 crore in 1998-99 to Rs 17.8 crore in 1999-2000.

The Crocodile range includes shirts (formal and casual), T-shirts, trousers, undergarments, socks, jeans, leather accessories, sunglasses and ties. The company has plans to introduce a ladies wear range and kids wear soon.

As part of its plans, the company will increase the number of Crocodile galleries to 100 by end of 2002 from the current 39. Besides the exclusive outlets, the company also sells its products through 2,500 multi-brand outlets throughout the country.

With expansion on the cards, Crocodile Products plans to increase its turnover to Rs 22 crore in 2001-02. The company has earmarked around Rs 2.4 crore for advertising and promotional activities. The company has manufacturing units at Avinashi, Coimbatore and Bangalore and has a workforce of around 3,000.

Worldwide, the Crocodile brand of apparels and accessories are available in 20 countries including Singapore, Japan, Taiwan, Malaysia and China.