With Indian Terrain, the men's apparel brand from apparel exporter Celebrity Fashions Ltd, growing to be a Rs 100-crore brand, the company is looking to spin it off as a separate entity later this year from the division that it is now.
The Celebrity Fashions Chairman and Managing Director, Mr V. Rajagopal, says in the next three-four years Indian Terrain, a ten-year-old brand, can grow to be as big as Celebrity's export business, which stands at around Rs 200 crore now.
Mr Charath Narasimhan, CEO, Indian Terrain, says the brand has reached a critical mass now and is well on to its next growth trajectory. “The brand now has a deep understanding of the Indian market and the various product categories as well as the design fluency that we need.”
As a separate entity, the brand can have its own management team, a compensation structure different from the export business, raise its own capital and generate more stakeholder value and also fetch better valuations than an export unit where there are immense pricing pressures from overseas buyers.
The overall men's apparel market in the organised sector is approximately Rs 7,000 crore of which the premium segment is around Rs 2,000 crore. Indian Terrain, positioned in the premium end where the price band is Rs 1,000 to Rs 1,500, has garnered a 5 per cent share, according to Mr Narasimhan.