- Meenakshi Kumar |
Kewal Kiran Clothing has acquired women’s brand Desi Belle. This marks Kewal Kiran’s foray into the women’s wear segment. The apparel retailer will focus on Tier II and III cities and increase the number of distributors across India from 125 to 200. The company owns brands Killer Jeans, Lawman Pg3, K-Lounge, Integriti, Easies and Addiction. It also plans to launch a new brand, Immortal, to gain market share in the low- priced segment.
Kewal Kiran earlier, followed a conservative approach, selling garments to wholesalers and distributors through an outright purchase agreement. Though this strategy helped in building a strong balance sheet with better cash flows, it did not provide access to key northern markets. The company will now offer garments to traders in North India with a commitment to take back 20 to 30 per cent of the goods if not sold.
Geographically the eastern region contributes 35 per cent to sales, followed by the southern region at 20 per cent and the western and northern region at 20 per cent and 15 per cent respectively. The central region contributes five per cent. The aim is to grow the top line as a valuation game and focus on growing profitability and revenue by widening the market reach and offering value-for-money apparels rather than discounts.