Date:08/12/2006 URL: http://www.thehindubusinessline.com/2006/12/08/stories/2006120803690500.htm

Indian Terrain to create brand for Reliance Retail stores

Vinay Kamath

Aims at being a separate company by 2010

"It's a huge opportunity and we will bring to bear the same international experience and quality that we do for global clients".

AN INDIAN TERRAIN showroom in Chennai.

Chennai , Dec. 7

Indian Terrain, the Rs 75-crore menswear brand from Celebrity Fashions Ltd, has tied up with Reliance Retail, to develop an exclusive brand of apparel called Spirit, which will retail only through Reliance's outlets as it scales up.

Says Celebrity's Chairman and Managing Director, Mr V. Rajgopal, "Reliance, as it rolls out, is going to bring a great retail experience to all the smaller cities. It has identified us as a partner to develop a sub-brand for them which will grow along with Reliance's roll out."

Spirit from Indian Terrain, as it will be badged initially, will be in the price bracket of Rs 600 to Rs 800.

To begin with, there will only be shirts and trousers in the portfolio.

"It's a huge opportunity and we will bring to bear the same international experience and quality that we do for global clients," he adds.

For Celebrity, there will be no marketing and branding costs, as this brand will be exclusive to Reliance. If plans pan out, in four years' time, Indian Terrain expects to be a Rs 500-crore brand, of which Rs 150 crore is expected to be Reliance alone.

The company has established a separate division for this venture with a business head.

"By the end of next year we will have a clear idea how the brand and this initiative develops," says Mr Rajgopal.

Mr Charath Narsimhan, CEO, Indian Terrain, explaining the initiative, says that Reliance, through its planned hypermarkets, intends to drive the value-for-money proposition.

As part of that strategy, it has partnered with big apparel brands, which have the expertise to design and develop sub-brands. The brands will retail through the hypermarkets as well as stand-alone apparel stores that Reliance may set up.

Indian Terrain, as well as other brands, will operate in a shop-in-shop format, where the front end will be managed by Reliance and the brand will manage the merchandise and inventory.

Reliance intends to develop two-three such brands in each category of apparel, be it formal or casualwear or denims.

Separate entity

Mr Rajgopal emphasises the point that Indian Terrain has been given the mandate to grow as a separate entity, and not as a division of Celebrity. "The day Indian Terrain hits revenues of Rs 200 crore we may spin it off, but its early days now," says Mr Rajgopal. The brand, he says, is so resourced that it can independently grow to the size it wants. The road map laid out for it is to be a separate company by 2010.

Next year, the brand will foray into womenswear with "innovative products" and aims to develop a national brand of Westernwear. It will also add a range of mens' accessories in the next six to eight months, says Mr Narsimhan.

Earlier this year, it launched sweaters and knitwear.

Indian Terrain, he says, has become a significant brand in Lifestyle's portfolio and for the last three years has been the number one brand across all its stores.

The brand expects to have 16 exclusive stores by March 2007 and 25 by next year-end. That apart, it sells through 67 counters at large retail chains and through 300 multi-brand outlets.