Aditya Birla Group to expand apparel retail business, invest Rs.400 crore on Peter England brand

The Group also plans to invest Rs.9000 crore ($2.14 billion) in its retail business, aiming to become a market leader

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"Our vision is to be India's dominant fashion apparel retailer. To bring our vision to fruition, we have restructured the apparel business into three divisions which cater to the mass, premium and luxury segments." said Kumar Mangalam Birla, chairman of the Aditya Birla Group.

"The market for apparel segment for organized players is estimated at Rs.49,000 crore ($11.6 billion) and is expected to grow to Rs.1,30,000 crore ($30.95 billion) in the next five years. Our plans are built on continuing the momentum to current brands, executing new growth initiatives and targetting select new opportunities", Birla said.

Madura Garments, a division of Aditya Birla Nuvo, aims to expand its retail base by setting up 80 Peter England People family stores in the next five years. While these stores will cater to the mass and premium segment, a separate chain of stores will be opened to cater to the luxury segment.

"We are targeting an aggressive turnover of Rs.1300 crore ($309.52 million) from Peter England People in five years," Birla said, adding that the company's target is to reach a revenue of Rs.6000 crore ($1.42 billion) in the next five years.

Madura Garments has 250 flagship stores for brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England.

"Peter England People is our foray into large-format retail for family apparels. Our foray into luxury lifestyle will happen by the end of this year." said Vikram Rao, business director (textiles and apparels), Aditya Birla Group.

The luxury retail stores will offer multiple luxury brands of men's apparel. About 10-15 of such stores will be opened by year-end, Rao said.

Madura Garments aims to raise the share of its retail revenues from 10 percent to 80 percent and bring down the share of revenues from its wholesale garments business.

The company is also exploring synergies with the group's retail arm, Aditya Birla Retail, to market its apparels at Aditya Birla hypermarkets called More.

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