Popular fashion designer Manish Arora today joined hands with with ethnic women wear retailer BIBA to form a joint venture for retailing of his label 'Indian by Manish Arora'. The new JV, in which BIBA will have 51 per cent stake, will launch its first store next month at the National Capital, followed by three more in the next six months.
"We were looking for a right partner to take the 'Indian by Manish Arora' brand everywhere. The brand already exists and association with BIBA will take it to more consumers with exclusive outlets," Arora told PTI. Due to the synergy between the brand and BIBA and economy of scale, the prices of 'Indian by Manish Arora' collections will be reduced by around 30 per cent initially, he added.
"Personally, I think that the prices of the brand are little expensive. The demand for my clothes were always there, but we could not provide it due to lesser number of stores and production. With this tie-up, we will now reach out to more people," Arora said. At present, various outfits of the brand are available at prices ranging between Rs 2,500 and Rs 2 lakh.
Commenting on the development, BIBA Apparels Managing Director Siddharath Bindra said: "The first store will be opened at DLF Emporio in Vasant Kunj in Delhi. We will open four store in the next six months." The JV will open a total of 20 outlets in the next two years, added.
"Apart from Delhi, we have identified many big and Tier II cities such as Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Ahmedabad, Ludhiana and Jaipur. All the stores will be company-owned exclusive outlets," Bindra said. When asked about the investments that the new entity will be making to establish its presence, he said: "Usually it takes us an investment of Rs 3,500 per sq ft and the store sizes will vary between 600 sq ft and 1,500 sq ft. So it will take us Rs 25-40 lakh per store." The company will fund this investment through a mix of cash flows from sales, internal accruals and debt, he added.
On sales expectations, Bindra said the company is aiming for an income of Rs 30-40 crore in the next two-three years. "The target is to reach Rs 100 crore in the next five-six years. The Indian luxury apparel market is growing very fast. It estimated to grow to Rs 10,000 crore by 2016 from Rs 1,000 crore at present," he added.