The Hindu : Business : Royal Classic to focus on forward integration

Online edition of India's National Newspaper
Wednesday, Apr 20, 2005

Business

Business

Royal Classic to focus on forward integration

M. Soundariya Preetha

To open 20 exclusive brand showrooms in southern India during this financial year

COIMBATORE: The Rs. 225-crore Tirupur-based Royal Classic Mills will focus on consolidating its Classic Polo and Smash brands in the domestic market during this fiscal.

"In the current year we are planning to strengthen forward integration," said its Executive Director, R. Sivaram. The Classic Polo brand products (T-shirts, shirts and trousers) were now available in leading chain stores across the country and 1,200 multi-brand outlets. Thrust would be on improving the shelf space for these products. The company would also open 20 exclusive brand showrooms in southern India during this financial year at an outlay of minimum Rs. 10 lakhs each. It had launched innerwear in the domestic market under the Smash brand recently and soon the product would be launched in Kochi and Chennai. In the first year, the company aimed Rs. 20 crores turnover from the brand.

Last year the company had "undergone a big leap in backward integration," he added. An investment of Rs. 45 crores was made in establishing a 16,000-spindle textile mill and four wind mills. The spindleage of the textile mill would be increased to 25,000 this financial year. The Rs. 3-crore modern ginning unit, with 26 gins and 120 tonnes a day capacity, was commissioned last month.

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