Mufti to launch women’s jeans, plans IPO

Mufti the well-known denim brand is planning to launch Mufti jeans for women in spring/summer 2010. Much on the lines of Mufti jeans for men, the new collection will be focused on the middle and upper middle class women. “The price range will be between Rs 1,599 to Rs 1,999.

And we will complement it with women’s shirts,” says Kamal Khushlani, Director, Credo Brand Marketing, the makers of Mufti brand.

Initially, Credo plans to test the market for women’s jeans in cities like Jaipur, Delhi, Mumbai, Hyderabad, Lucknow, Kolkata and some cities of Punjab. Once the brand is established, specific women’s denim stores are being planned. Till then all Mufti retail outlets will be selling the new collection. “Initially, we will launch 25 styles. The logo will be changed slightly to make it more effeminate for the women’s jeans line,” says Khushlani.

The brand is also launching two lines in men’s denim wear for the autumn/winter season. The Mufti Jeans Couture, priced between Rs 2,100-2,700. It will be a value oriented high fashion product. Then there will be Mufti Jeans a fashion line. “Mufti still doesn’t do basic products,” says Khushlani.

The brand has three channels through which it distributes its products. The multi brand outlets serviced by their distributors; large format stores; and the exclusive brand outlets (EBOs). At the moment, Mufti has 105 EBOs sized between 600 to 800 sq. ft. It plans to raise the number to 150 by March 2010. Of these, 10 to 12 EBOs are company-managed the rest are franchisees. The investment for franchisee stores depends on the territory. They are also present in 450 MBOs across India. “Last year, our turnover was Rs 78 crores and we will cross Rs 100 crores by March 2010. We are targeting Rs 150 crores next year,” says Khushlani.

It may be noted that Bombay Rayon has 10 per cent stake in the company. They are also Mufti’s major fabric suppliers. Similarly, The Times of India has bought 10 per cent stake in Credo through a private treaty. Credo is planning to launch an IPO in the next 12 to 18 months.