Companies

Hidesign all set to make foray into high-end luxury space

Dilip Kapur, owner of Le Dupleix and Promenade hotels and president of Hidesign. Photo: Special Arrangment   | Photo Credit: T_Singaravelou

Leather accessories maker, Hidesign, is all set to launch a new high-end luxury label named after its Italian designer, Alberto Ciaschini. The hand crafted collection will feature wallets, handbags and clutches using high quality leather decorated with intricate embroidery and will be launched by the end of this month in 20 of Hidesign's 70-odd stores across India.

Alberto Ciaschini, based in Milan, will lend his name to the brand which will belong to Hidesign. Ciaschini has been heading the company's design team since 2004.

Speaking to The Hindu at Hidesign's factory in Puducherry, Dilip Kapur, founder and President, said that the new brand was aimed at filling the gap between high-end luxury brands and premium brands that were largely foreign names.

Ladies' handbags in the new brand will cost up to Rs.25,000 a piece compared to an average price of Rs.4,500 for the normal Hidesign brand handbags. Sales from the new brand are expected to be around Rs.8 crore in the first year. The current turnover of Hidesign is about Rs.120 crore.

The margins in the luxury segment were superior, Mr. Kapur said. “It will ‘do wonders' to Hidesign,'' he added.

About 65 per cent of the company's turnover comes from India and the balance from abroad where it has 12 stores. Well-known international brand, Louis Vuitton, holds a 5 per cent stake in Hidesign. The French company valued the Hidesign brand at Rs.300 crore a few years ago. Asked what prompted Louis Vuitton to invest in the company, Mr. Kapur said the luxury brand saw Hidesign as one of the most promising companies in their field in one of the fastest growing markets in the world.

Mr. Kapur said that Louis Vuitton helped with advice on branding and marketing apart from training Hidesign staff. “They are the best brains in branding today,” according to Mr. Kapur. He said that private equity players were approaching him “all the time” seeking to invest. “We are not sure about PE yet as to whether it is a liability or an asset. Anyway, the decision has to be made by my son Vikas, who will have to live with it,” Mr. Kapur said.


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Printable version | Jul 24, 2021 12:39:37 AM | https://www.thehindu.com/business/companies/hidesign-all-set-to-make-foray-into-highend-luxury-space/article3300878.ece

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