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July 13, 2015
Sapna
Agarwal, MINT
Mumbai,
13 July 2015
Three
brands from Madura Fashion and Lifestyle, a unit of Aditya Birla
Group company Aditya Birla Nuvo Ltd, crossed the Rs.1,000 crore
revenue mark in terms of consumer price in fiscal 2015. Fiscal
2016 will see two brands from Arvind Ltd’s retail unit Arvind
Lifestyle Brands Ltd cross the same milestone.
Consumer price is the price at which the product is sold to the
consumer. It could be lower than the maximum retail price (MRP)
as it takes discounts into account.
“More and more brands are now crossing the Rs.1,000 crore
mark. In the next two-three years, we will have at least 10 brands
of this size,” said Devangshu Dutta, chief executive officer,
Third Eyesight, a retail consultancy firm, pointing to brands
such as Levi’s, Benetton and Zara.
It took brands such as Louis Philippe, Van Heusen and Peter England,
from Madura Fashion and Lifestyle, 10-15 years to get to Rs.500
crore. However, their journey towards revenues of Rs.1,000 crore
happened in less than five years, said Ashish Dixit, president,
Madura Fashion and Lifestyle, who now expects it to take even
less time for them to get to Rs.1,500 crore. Louis Philippe will
reach Rs.1,500 crore in revenues next year, said Dixit, adding
that in the next two to three years, the company will have three
Rs.1,500 crore brands in its portfolio.
From Arvind Lifestyle’s portfolio, US Polo and Arrow have
revenues of close to Rs.850 crore and will reach Rs.1,000 crore
this fiscal year, said chief executive J. Suresh.
Brands are reaching the Rs.500 crore mark in a shorter time
now and scaling to Rs.1,000 crore from there even faster, said
experts.
Los Angeles-based Forever 21, launched in India two years ago,
will reach Rs.500 crore in fiscal 2016, said Dipak Agarwal, chief
executive of DLF Brands Ltd, the joint venture partner for the
brand in India. From there, it will be another three years for
the brand to hit Rs.1,000 crore revenue, said Agarwal.
Currently, there are nine Forever 21 stores in India and the
retailer plans to add five to six every year. On average, each
Forever 21 store does business of Rs.35 crore per year, said Agarwal.
Last year, Arvind Lifestyle also announced partnerships with US retailer Gap Inc. and speciality retailer The Children’s Place.
“Weare targeting revenues of Rs.1,000 crore for Gap and
Rs.500 crore for The Children’s Place in the next four to
five years,” said Suresh in an earlier interview to Mint.
Inditex Trent Retail India Pvt. Ltd, the joint venture between Inditex SA and Tata Group company Trent Ltd for retail chain Zara in India, posted 24% annual growth in sales for the year ended March 2015 at Rs.721 crore ($114 million), The Economic Times said on Friday, citing Trent’s annual report released on Thursday.
Zara, which has been in the country for five years, could
be one of the first international brands to hit the Rs.1,000 crore
mark, said Dutta.
To be sure, some brands, such as Benetton, have franchises in India and hence report their sales at wholesale value, which is lower than the sales of brands that report at MRP or consumer price, such as Zara.
(Published in MINT.)
