NTC to launch ‘Brand India’ stores, spread retail presence

National Textile Corporation (NTC), an eco-friendly integrated textile company, plans to launch new brands which with a pan India presence. Its aim is to be a leading textile enterprise, improving capacity utilization, economy of operations,

productivity, quality, brand image, market share and exports. “We have put in place various mechanisms to achieve this. We are improving our capacity utilization and launching new brands, renovating our stores and getting into the franchise mode for readymade garments. Also, we are participating in trade fairs to increase exports,” says Aloke Banerjee, Director Marketing, NTC.

And to help NTC build a competent designing team they recently hosted an initiative called ‘Young Designer Hunt’ wherein well known designer Raghavendra Rathore was roped in. Young designers are participating in this event and would exhibit their work regularly and take them to international level. Winners of the ‘Designer Hunt’ will be working on a new apparel and accessories brand which will soon be launched in India and overseas. The brand, called ‘Brand India’ is being launched under the guidance of Raghavendra Rathore.

Talking further about their retail spread Banerjee says, “We plan to launch 200 stores to be operated through franchisee model of operation focusing on supply chain model. This would be done with the help of a master franchise. We have a very transparent method of selecting a master franchise though advertisements. We have selected a master franchise that will do the operations for other franchises pan India. NTC will have full control on these independent franchise stores in terms of product supply. They will store only NTC products exclusively. The main investment will be done by the master franchise while NTC will help in part renovation of the stores as and when required.”

Similarly, for increasing production capacity NTC plans to have private partners to do the funding. Meanwhile NTC also has generated funds that will be utilized to increase their production capacity. Further, the company plans to apply for bank loans to help them increase the capacity.

At present NTC does not have any foreign partnerships for their production and would be getting into a partnership for its technical textile venture. “We have received inquiries from a few foreign companies in Japan, Germany, America and India as well. We are in the process of shortlisting a company for a joint venture for marketing and production of our technical textile venture,” adds Banerjee.

They plan is to launch the new brand in the value for money segment. As Banerjee says “We would like to give the people of India an honestly priced product. Moreover the fact that the brand is coming from the government will ensure that the product is available at the right price and the promised quality.”

NTC plans to launch ‘Brand India’ between July and September. It has a substantial budget for both marketing and brand building. “We shall not constrain ourselves to our expansion appetite, currently the budget allocated for our advertising and marketing is approximately around Rs. 25 crores. An aggressive brand and retail communication has been planned. We have a value for money proposition for our shirt brand. A women’s empowerment program called “StreeVijay” will be launched soon. We also plan to launch a mid level brand called ‘Raasa’ along with it says Banerjee.

For ‘Brand India’ the company plans to target the middle class and upper middle class segment, while as far as the retail spread is concerned the company shall get into A and B markets and for the other brands NTC plans to target the B and C markets.

NTC aims for a CAGR of 6 to 8 percent and capture not only the Indian market but also spread is its wings internationally. However, according to Banerjee this will happen in phases and currently they will concentrate on building the brand locally.