Indus League Plans Line Expansion, Esop

Riding high on a string of impressive performances, the city-based Indus League Clothing Ltd is gearing for the launch of a top-end western women's wear range by the year end and also finalising stock option plans for its manufacturing and marketing associates.

"There's no real brand in the women's wear segment, so we have to ensure that we get it right the first time," Indus League managing director, Sriram Srinivasan, said.

As part of the effort, the company is also setting up a 4000 sq.ft design studio in Bangalore where designers and visual mechandisers will work together to fine-tune the product design and finish.

 

The company also unveiled their Employee Stock Option (Esop) Plan here yesterday. Called Indus League Employees Growth Options 2000 (ILEGO 2000), the scheme, with a base figure of 500 stock options, will be offered to every employee who has put in six months of service.

The first Indian clothing company to receive venture capital funding, Indus League will offer over 7 per cent of the fully diluted equity through ILEGO-2000.

"We will have special stock options for employees who have sacrificed higher salaries elsewhere to join us, contributed substantially and stayed committed to the company's growth," finance and HR director, Uday Kumar, said.

In the 78-member strong company, 28 early-bird employees have already received their stock option grant letters, and the value of their stocks has already shot up by 350 per cent, Kumar said.

Just seven months into the launch of its brands, Indus League is expected to achieve sales of over Rs 27 crore in 1999-2000, more than 60 per cent higher than its original business plan projections based on which it received its funding from Draper International and Dalmia Cements.

ICICI Venture, which valued Indus League at Rs 50 crore, picked up a significant but undisclosed stake in the company in January 2000.

Launched in April 1999 by Sriram Srinivasan and seven other professionals from the garment industry, Indus League launched their two original brands - Indigo Nation and Scullers - within five months in India. Both these are also marketed in seven countries in West Asia and Sri Lanka.