Bangalore: Italian luxury apparel maker Canclini Tessile is tying up with a little known Tirupur-based company to stitch its shirts in India. The equal JV with Emperor Textiles will also set up a separate manufacturing unit in Tirupur to manufacture Italian fabric for domestic consumption.
Canclini Tessile, known for its fabrics worldwide, makes the Via Montenapo brand of shirts which retail at prices starting from Rs 5,000 and can go up to Rs 30,000.
"Meeting Canclini was by accident. We have signed a memorandum of understanding to work together and are looking to form a new JV company Italian Luxury Garment, where Canclini and Emperor will hold equal share," said Karthekeyan Palaniswamy, managing director of Emperor Textiles, which is in the business of home textiles, apparel and garment manufacturing.
The company has an annual turnover of Rs 60-70 crore and works for some big names like Louis Philippe, ITC and Color Plus. Emperor also exports shirts to Australia and Europe. "There are many players in the mass market segment but in the high end there are only a few," said Palaniswamy.
The company currently manufactures 8,000-10,000 shirts a month but with the new tie-up it will have to ramp up its capacity. Under the JV, the company's plant will have a capacity of three million metres, which can be ramped up to six million metres yearly at a later stage.
"The crisis in Europe crisis is very tough. We could not grow there any more, so decided to move to BRIC countries. Strategically, India is one of the markets with the highest growth potential outside Europe for Cancilini, both for fabrics and retail," said Simone Cancilini, president of Cancilini Tessile SpA. Depending on its success in India, Canclini also plans to replicate the India model in other BRIC countries.
The company is in talks with 30 retailers in India to sell their fabrics. The joint venture company has already tied up with Kimaya for marketing and sales of its men's shirts range through their outlet in Bangalore.
"We plan to test market with a shop in shop with Kimaya but once we penetrate into metros there is room to experiment with standalone stores too. Later, we might also put fabrics in the stores," says Simone. Canclini plans to have 25 shops in shops stores in the next 2-3 years.
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