CHENNAI: With a view to unlocking value, Celebrity Fashions is planning to hive Indian Terrain, the men's apparel brand, into an independent entity. At present, Indian Terrain functions as a division of Celebrity Fashions.
The move comes even as Indian Terrain is set to scale the Rs. 100-crore sales mark anytime now.
Indian Terrain brand has seen a 20 per cent growth last year. Chairman and Managing Director of Celebrity Fashions V. Rajagopal, speaking to The Hindu said that he was confident that this growth trend will persist in the coming year as well.
The overall men's apparel market in the organised sector is estimated at Rs. 7,000 crore. Out of which, the premium segment is placed at around Rs. 2,000 crore. Indian Terrain is positioned in the premium-end.
The brand, according to Mr. Rajagopal, has expanded well in the past and spread into mini-metros as well. Another 20 exclusive stores will be added to its 45 exclusive outlets this year. According to Mr. Rajagopal, 40 per cent of its revenues come from exclusive brand outlets.
New stores will come up soon in mini-metros such as Ahmed Nagar, Tiruchi, Vizag, Bikaner and Jodhpur and Gangtok in Sikkim. He feels that the Indian Terrain brand could grow bigger than the export business of Celebrity, which now stands at around Rs. 200 crore.
Charath Narasimhan, CEO, Indian Terrain, said that the brand was now well poised to enter a higher growth orbit. In line with this, Indian Terrain will deepen its engagement with Golf. It may look at the option of going in for a Golfer as a brand ambassador, he says. Precisely with this in view, Indian Terrain has inked an agreement with former Golfer Rishi Narain's golf management company to take the brand across the golf circuit as the presenting sponsor of the world corporate golf challenge tournament. The Rs. 255-crore Celebrity Fashions is in the process of reducing its losses and debt through a combination of exercises ranging from debt revamp to sale of a unit and adoption of lean manufacturing techniques.