Century Textile & Industries (CTlL), the flagship of the Rs3,000-crore B K Birla Group, plans to foray into denims and casual wear.
MUMBAI: Century Textile & Industries (CTlL), the flagship of the Rs3,000-crore B K Birla Group, plans to foray into denims and casual wear. It has lined up launches in the apparel and retailing space early in the next fiscal.
Century, which is a major player in cotton fabrics, will launch denim products in the first week of April. The offerings, under the “Denim by Century” brand, will be initially available in 41 stores and later in another 83 outlets. Century also plans to set up exclusive brand outlets for denims in the next year.
Subrata Siddhanta, business head, Cottons by Century, CTIL, told DNA Money: “The market for denim exports is little shaky, but the domestic market is growing at 15% year-on-year. We are confident of the denim category as consumers are moving from formal wear towards casual and denim wear.”
Analysts said companies like Raymond, Arvind Mills, K G Denim are also exploring options to boost denim sales. Century Textiles’ foray into the segment is thus a big challenge.
Century Textile, which owns what is considered to be Asia’s largest composite 100% cotton textile mill, will also launch its casual wear range under the “Century Yuwa” brand in the next two quarters.
“We have captured a decent market share in the middle segment (with Cottons by Century and Century by Century brands) but we need to tap the youth market where exponential growth is waiting to happen,” Siddhanta said.
Meanwhile, another company official who did not wish to be named said Century Textiles is looking for brands acquisitions and joint ventures. It hopes to achieve a turnover of Rs 500 crore in the next five years.
Professional services firm Ernst and Young is believed to be advising Century on its future growth plans.
The company will open another 100 outlets across the country in the next fiscal.
Siddhanta said high rentals are a big challenge for expansion of retail chains. “There are more than a dozens apparel brands in the market, but companies are unable to roll out stores as margins are under pressure. I expect some consolidation in the market in next 2-3 years. Ultimately not more 5-6 brands will survive if rentals keep shooting at the same rate, he added.
r_mithun@dnaindia.net
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