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Swetha Kannan

To set up own trouser factory; scale up shirt production at its plants

Bangalore , Aug. 9

Tirupur-based garment company Royal Classic Group plans to ramp up its manufacturing potential by setting up its own trouser factory and scaling up shirt production at its existing plants. It is also looking to expand its product portfolio with the launch of men's jeans.

The company has invested Rs 3.5 crore in the trouser factory, which is being set up in Palani, Tamil Nadu. Production is expected to start by October. "Machines from Germany will be brought into the factory, which will have a production capacity of 800 trousers per day," said Mr R. Sivaram, Executive Director, Royal Classic Group.

Currently, the company sources trousers from vendors in Bangalore.

The company has also invested Rs 45 lakh in importing sewing machines from Japan to scale up shirt production capacity at its factories from 500 shirts per day to 1,000 in a couple of months.

Royal Classic has six manufacturing units in Tirupur and one in Palani.

The garment manufacturer, which retails trousers, shirts, T-shirts and jackets under the Classic Polo brand, is set to enter the denim wear segment by launching men's jeans at a price bracket of Rs 900-1,400.

"We decided to enter this segment based on consumer feedback. Test marketing is over and the actual launch will happen in a month," said Mr Sivaram.

Royal Classic is also looking to sell sports shoes under the brand Smash, a Mumbai-based company it acquired last year. Currently, innerwear and sports apparel is being sold under this label. The company is scouting the domestic market for similar acquisitions, strategic alliances and "long-term" manufacturing tie-ups with retailers.

Eyeing the West

Royal Classic's products are sold in 1,200 multi-brand outlets and 20 exclusive stores, apart from being present in retail chains such as Shoppers' Stop, Globus and Pantaloon. "The target is to have 100 standalone stores by March 2007," said the company's Executive Director. Royal Classic, which is South-focussed, plans to enter the West and is eyeing the markets of Mumbai, Pune, Nagpur and Ahmedabad.

The 225-crore company also exports its products to international buyers such as Gap, Sara Lee and Esprit. Last fiscal, exports contributed about Rs 100 crore to the turnover, with the rest coming from the domestic market.

Royal Classic is targeting a turnover of Rs 300 crore this fiscal.

More Stories on : Brands | New Projects | Readymade Garments

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