News: Pearl Global plans foray into retail
(NDTV 16/05/2006) Mumbai - Yards and yards of fabric from Pearl Global factory will be shipped overseas for brands like Gap and J C Penny, but the company now thinks that India's retail market will make the perfect fit after it doubles its capacity.
It's almost like a BPO operation. While exports continue to be the big story, especially with its china factory now on stream, it's the local market that's offering the opportunity in retail.
Pearl Global is in talks with UK's third largest retail brand. It's hoping to enter a JV with Maitland or New Look for retail stores and apparel hypermarkets and the first of the stores will be set up in India by December.
For this retail venture, Pearl Global is targeting an investment of more than Rs 250 crore. They are in talks with some big players who are coming next week for mainly apparel and accessories.
Expansion plans
But to do this, Pearl Global needs to consolidate its manufacturing, distribution and branding divisions, now spread over three companies in 12 countries.
The company has now decided to float a holding company to merge pearl global, which has a market cap of Rs 120 crore, with the main group House of Pearl, which holds a valuation of Rs 2000 crore.
After the merger, the management will consider listing the combined entity.
Post quota, the sector's profitability might have slipped thanks to competition, but the volumes in the business have picked up tremendously.
This is why, companies like Pearl Global are now thinking long term and taking advantage of relaxed retail laws to get into retail and to make the most of India's apparel market pegged at Rs 88,000 crore.
It's almost like a BPO operation. While exports continue to be the big story, especially with its china factory now on stream, it's the local market that's offering the opportunity in retail.
Pearl Global is in talks with UK's third largest retail brand. It's hoping to enter a JV with Maitland or New Look for retail stores and apparel hypermarkets and the first of the stores will be set up in India by December.
For this retail venture, Pearl Global is targeting an investment of more than Rs 250 crore. They are in talks with some big players who are coming next week for mainly apparel and accessories.
Expansion plans
But to do this, Pearl Global needs to consolidate its manufacturing, distribution and branding divisions, now spread over three companies in 12 countries.
The company has now decided to float a holding company to merge pearl global, which has a market cap of Rs 120 crore, with the main group House of Pearl, which holds a valuation of Rs 2000 crore.
After the merger, the management will consider listing the combined entity.
Post quota, the sector's profitability might have slipped thanks to competition, but the volumes in the business have picked up tremendously.
This is why, companies like Pearl Global are now thinking long term and taking advantage of relaxed retail laws to get into retail and to make the most of India's apparel market pegged at Rs 88,000 crore.
posted by InCar Group Press Room at 14:22
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