The Rs 250-crore Oswal Group is planning to bring in international fashion wear brands such as Zara and River Allen into the country and creating independent stores for them.
Mr Adish Oswal, Managing Director, Amram Trading Pvt Ltd, an Oswal group company, told Business Line, "We are looking at bringing in these young fashion brands and becoming a master franchisee for them."
Having launched its own stores under the Sensa and AO brands, the Oswal group company has intentions of leveraging the growing fashion retailing segment by creating both stores and fashion brands under their respective labels.
Zara is a Spanish fashion wear brand targeting the 25-plus category while River Allen is a UK brand and is meant for the 18-plus segment.
Having launched its first multi-branded super speciality store Sensa and its ready-to-wear smart fashion casual wear brand AO last year, the company intends bringing in more international labels in the lingerie segment such as Chantele, Passionate and Calvin Klein.
Adds Mr Oswal, "We are looking at bringing in body wear and lingerie from Calvin Klein into our Sensa stores." However, posting profits is still a long way off considering the premium nature of its brands. "We intend breaking even by 2007," states Mr Oswal.
Admitting to the high import duties imposed on imported garments, Mr Oswal claims, "The cost of importing garments is almost 25-30 per cent of the value of the merchandise. In India, duties are still low compared with the European countries."
According to KSA Technopak, the lingerie market in India is expected to grow by almost 70 per cent by 2009 — over five years. The growth of the lingerie market in India has been aided by new retail space with the rise of malls and emergence of organised retail formats.
The company intends launching 120 Sensa stores in the next three years.