Prem Durai Exports buys Swiss leisurewear -- Switcher

Prem Durai Exports, a Tirupur-based garment manufacturer has acquired a controlling stake in Swiss leisurewear brand Switcher. The export arm of PGC Industries and group, Prem Durai Exports has been Switcher’s supplier for over two decades.

As chairman D Prem, explains, “We were Switcher’s suppliers, so we thought we could play a role in terms of cost-cutting. We felt there are various avenues to cut costs and also be a strategic supplier by keeping the bulk warehouse in India and replenishing stocks to Europe. So it was a win-win for both of us. We hold a 51 per cent stake and majority control of the brand.”

Switcher Holdings owns brands like Switcher, Respect and Whale. The acquisition would enable PGC to gain a strong foothold in European markets such as Germany, Switzerland and Austria; Switcher would gain from lower costs in various activities such as warehousing, IT, logistics, product design and development. Switcher is a well-known European player with operations across the continent. It sells approximately seven million garments in Switzerland alone and has over 1,150 corporate clients in Switzerland and European countries.

In India, Prem Durai already sells at 600 retail points. They are in MBOs and large formats like Shoppers Stop. “Most of the retail points are in the metros. We are undecided whether to take the metro or Tier II route. Right now we have no EBOs but after three months we will decide and a franchise models will work for the benefit of both parties. The first flagship store may be in Chennai or Mumbai. It won’t be above 600 sq. ft. We will see the response to this store and then open more stores.”  Prem says they are yet to figure out the right plan for Indian retail. “Switcher may be big in Switzerland but I don’t think Indians have any idea of Switcher. We want to go slow, open shops, make every shop work and then move forward rather than with a big bang.” Switcher sells 95 per cent of its products in Switzerland and is considered a family brand with responsible pricing.

Prem Durai Exports will also continue to expand exports. The next move will be to Germany and to do corporate business. “Switcher has already been doing corporate business but we want to kick-start it again with a big bang. Right now there is a manufacturing unit and we would like to stock and sell in Germany.”

PGC Industries and Group have several verticals from garment manufacturing to retailing (Switcher Group in Europe and India, T-Mart India, Respect India, BelInd Belgium) and IT divisions. Seven years ago, under a 55:45 retail partnership, by Switcher and PGC, the brand was being retailed in India through PGC’s T-Mart stores. Also under an exclusive manufacturing arrangement, Prem Durai Exports has been handling 55 per cent of Switcher’s production in terms of volume and 40 per cent in value terms. Last year, the group’s turnover was Rs 380 crores and next year they are looking at Rs 640 crores.