A readymade shirt with a 15-year guarantee tag. That is what
Crocodile Products, manufacturers of the Crocodile brand of
ready-to-wear garments, is planning to offer Indian consumers.
"Our joint venture partners sell such shirts in Thailand
under the brand Cartelo. The guarantee is against colour fading,
stitches, breakage of buttons and the like. The guarantee
card comes in plastic and not paper," says Crocodile
Products managing director Venkatesh Sivaraman.
around Rs 3,000, such shirts will be imported from one of
the Crocodile Internationals plants. Currently the company
sells shirts, T-shirts, trousers, mens undergarments and
accessories like belts, socks, sunglasses, watches and ties.
curiously, stays away from ladies wear. Why? "The size of
Indian women differs from one state to the other, so it is not an
economical option. Further, our women would like to have exclusive
designs; it doesnt bode well for production houses," says
The Rs 18.7-crore
turnover company is a three-year-old joint venture between Shivram
Associates (holding 66 per cent) and the Singapore-based Crocodile
International (33 per cent), having a major presence in the Asian
region. "Financial institutions hold 1 per cent," he
says. Crocodile International gets a 4-per cent royalty from the
Indian company for brand usage.
The Indian venture,
excluding the brand, is valued at Rs 80.63 crore by Deloitte
Touche Selles. Sivaraman says an additional sum of Rs 8 crore will
be invested in brand-building and expansion activities. Till date
the company, which broke even last fiscal, has invested Rs 7 crore.
The companys three
facilities are located at Bangalore, Coimbatore and Avinashi near
Coimbatore. While the Bangalore facility manufactures shirts, the
other two plants make knitted garments. "We have an annual
capacity of 4.8 lakh shirts and 30 lakh knit garments," says
Sivaraman. "By this yearend we plan to increase out
franchisee network to 80 stores from the current number of
Replying to a query
about the viability of a franchisee model in the light of
another leading garment retail chain closing its franchisee
deals, he says: "My galleries are small in size ranging
between 700 to
2,000 sq ft so there wouldnt be any problem in such a format."
According to him apart from the exclusive outlets, the companys
products are available in around 2,500 multi-brand outlets.
Apart from franchisees,
the company will also expand its network of distributors (authorised
and super-authorised dealers multi-brand outlets) with or
without separate corners for the Crocodile brand.