— PHOTO: SHANKER CHAKRAVARTY

FORWARD INTEGRATION: Models present creations by Lakshmi Mills Co. at the launch of Tyche Life western casual wear brand in New Delhi on Thursday.

NEW DELHI: The South based textile manufacturer, Lakshmi Mills Co., on Thursday announced its foray into the garment retail segment through the launch of its western casual wear brand `Tyche Life.' The company will be investing Rs. 60 crore on modernisation of its yarn mills.

For the company, its entry into the garment retail business is an exercise aimed at achieving forward integration. "We are targeting a Rs. 10-crore turnover by March 2007 and later plan to take it to Rs. 25 crore,'' Lakshmi Mills Vice President Operations, N. Jaychander, told reporters here on Thursday.

The modernisation of the company's yarn mills in Palladam, Coimbatore and Kovilpatti in Tamil Nadu was being undertaken in two phases. And post-modernisation, exports would be enhanced from about Rs. 15 crore to Rs. 30 crore by 2007-08, he said, adding that the newly launched `Tyche Life' would also be exported to the U.S. and European markets.

Mr. Jaychander said the brand was targeted at the mid and upper-mid segment and comprises western casual wear for men, women and kids in the price range of Rs. 400 to Rs. 1,500. It would be marketed through 800 outlets by the end of fiscal 2007 and the target was to sell one million pieces every year, he said.

Having already launched its product in the southern markets, the company would focus on rolling it out in the northern, eastern and western regions in a phased manner. It would use the normal distribution channels to market the product.

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