Financial Daily from THE HINDU group of publications
Thursday, Feb 21, 2002
Ritspin forays into branded womenswear
KOLKATA, Feb. 20
RITSPIN Synthetics Ltd, primarily a manufacturer of speciality yarn, has completed forward integration into branded women's garments. It expects to register net profit in the next financial year.
Addressing a press conference Mr Manish Kumar, Managing Director, said the Indian ladieswear market was worth Rs 16,000 crore, and growing at a rate of nine per cent per annum. "Out of this, the women's Western wear market is worth Rs 400 crore, but its compounded annual growth rate is 20 per cent per annum," Mr Kumar said.
Ritspin Synthetics has recently introduced the Wearit brand of Western women garments. The company has announced that it has appointed Ms Celina Jaitley, a former Miss India, as the brand ambassador for Wearit.
Ritspin has entered into a marketing arrangement with the retail chain, Shoppers' Stop, for selling Wearit products which will be priced between Rs 475 and Rs 750. The products will be introduced in Mumbai, Delhi, Bangalore, Hyderabad and Pune.
The company, now a Government-recognised export house, was floated in 1995 and its manufacturing unit is in Indore. For the year ended March 31, 2002, Ritspin's turnover is expected to be Rs 95 crore, of which Rs 75 crore is from exports. In 2002-03, Mr Kumar said, the company expects to register a net profit on a turnover of Rs 100 crore.
"We are trying to add value to our original product, the speciality yarn, sold under the brandname Ritvang. Having now moved into the untapped market of branded women's garments, we now hope to register profits," he explained.
Ritspin's production facility at Indore is capable of turning out 25,000 garments per month.
According to Mr Kumar, adding more capacity was not a problem. The garments will be manufactured from its own speciality yarn.
Itochu Corporation of Japan holds around eight per cent in Ritspin Synthetics against the promoters' holding of 55 per cent. The rest is held by banks and financial institutions. Mr Kumar ruled out any possibility of a change in the shareholding pattern. The Wearit brand is being introduced by a separate company, Ritspin Global Ltd.
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