Financial Daily from THE HINDU group of publications
Tuesday, May 30, 2006
Financial Daily from THE HINDU group of publications Tuesday, May 30, 2006 |
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Marketing
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Retailing Corporate - Mergers & Acquisitions Provogue eyes acquisitions Purvita Chatterjee
Mumbai , May 29 Post its IPO, Provogue India is eyeing acquisitions to growth. Even as the market has been abuzz with rumours about the brand getting acquired by a bigger apparel manufacturer, Provogue is planning to acquire more brands. Speaking to Business Line, Mr Salil Chaturvedi, Director, Provogue India Ltd, said, "Having met our capital requirements through the IPO, we are now definitely looking at acquisitions to expand our business. The acquisition is expected to be in the retail sphere and will not necessarily be restricted to clothing."
New categories
Having ventured into new categories such as footwear, womenswear and denims, the company is now launching a new concept in retailing whereby its stores will have large formats with 6,000 to 10,000 sq ft area under the new brand of Mega Studios. Adds Mr Chaturvedi, "Post 2006, we intend having a new retail format under the Mega Studio category." Besides, this year Provogue intends taking the number of outlets from 28 to 74 across the country and has earmarked an investment of Rs 27 crore for the next three years. At the same time, the apparel major has been trying out category management as a concept at its stores. Since it has added new categories such as footwear, Provogue has decided to appoint M&B Footwear to manage its footwear category at its stores. "It is a licensee arrangement and as long as the software is connected to the vendor, it is easy to manage the category," states Mr Chaturvedi.
Category management
In fact, software is the key for category management for all retailers. With the purpose of adding value to the retailer, category management is still a relatively new concept in India. As Mr Chaturvedi says, "Category management is still not evolved, but it is the way forward in future. But the back end has to be robust and the vendor has to be updated on the product takeoff to add value to the operations."
Meanwhile, Provogue has earmarked an ad budget of Rs 6 crore and has recently appointed Everest Advertising to handle its account. Apart from Fardeen Khan, it has also roped in model Ujwala Raut to endorse its brand. With a sales turnover of Rs 160 crore, Provogue India is aiming to grow at 40 per cent this year.
More Stories on : Retailing | Mergers & Acquisitions | Readymade Garments
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