SKNL to focus on ready-to-wear

Tuesday, 27 July 2010

As consumers are increasingly shifting away from buying textile and getting it tailored to ready-to-wear apparels, S Kumars Nationwide (SKNL) is planning to increase its share of ready-to-wear in its product mix. This will help it to align its strategy to the changing taste of Indian consumers. At present, ready-to-wear accounts for 30 per cent of SKNL’s sales, which is likely to increase to 40 per cent over the next two years.

As a part of its growth strategy, it is also looking to enhance its distribution reach by adding more MBOs and opening new EBOs. It plans to roll out an additional 160 EBOs over the next two years through a mix of company-owned and franchise stores. SKNL’s brands currently retail across 30,000 MBOs serviced by a network of over 400 wholesale dealers. In addition it also retails through EBOs and large format stores.

SKNL ventured overseas through its acquisitions of Legguino in Italy and Hartmax (HMX) in the US. Legguino was acquired in October 2008 and HMX in May 2009. Legguino is a high value shirt fabric manufacturer supplying to leading brands like Prada, Hermes, Versace, Zegna, Etro and Burberry. HMX operates a portfolio of 32 brands (licensed) and caters to the men’s apparel segment. Overseas acquisitions have provided SKNL access to customers and distribution network in the developed markets of US and Europe. SKNL is a leading player in the branded textiles and apparel segment in India with market leadership position in the uniforms segment (30 per cent market share) and is the second largest player in the worsted suiting segment. Its products cater to all consumer segments ranging from mass market to luxury.