To foray into readymade garments by end of fiscal 2012-13.
Suiting fabric manufacturer and retailer, OCM India Ltd, is looking towards a brand image makeover and retail store expansion. With this, the company plans to foray into ready-made garments (RMG) by the end of fiscal 2012-13. Initially, the company will launch formal wear, including shirts, trousers and jackets, followed by semi-formal and casual in a phased manner.
According to SK Singhal, Chief Executive Officer, OCM India Limited, the major image makeover exercise will include expansion of 40-50 exclusive stores in the next three years from the current 15 stores. Then the company will introduce ready-made garments by the end of FY 2012-13. According to Singhal, only 15 per cent of fabric volume in India is consumed by the branded ready-made garment segment even as it grows in double digits.
Part of WL Ross & Co LLC, which the PE player acquired for $37 million (roughly Rs 186 crore) in 2007 from Birla Group, OCM has initiated a brand revamp for the first time since its inception in 1924. Resultantly, the company's makeover exercise includes expansion of its production capacity, product range and retail presence in the country.
As part of the brand revamp, the company is targeting youths in the age group of 25-30 years for its suiting fabric. The company’s worsted suiting fabric is available in the price range of Rs 650 per metre and upwards. However, it has also introduced synthetic and cotton products at revised price range of Rs 300 per metre and upwards for the youths who plan to buy suiting for their first jobs.
In Gujarat, OCM is in talks for setting up exclusive stores in Vadodara and Surat, apart from Ahmedabad. In the next one year, the company is looking to set up four exclusive stores in the state.
With all this revamping exercise, OCM India Limited is eyeing to more than double the company's revenue to up to Rs 350 crore by the end of fiscal 2012-13 from Rs 135 crore in FY 2011-12.
Moreover, it will make an investment of Rs 15 crore in order to expand its manufacturing capacity by 1-2 million metres per annum from the current 7.5 million metres per annum. Sales volume for OCM is also expected to rise from the current 5.5 million metres per annum to 6.5 million metres per annum by fiscal 2012-13.