Eminent Luggage To Open Exclusive Outlets In India

Font Size

Print

Feedback

Email

Discuss

New Delhi:: Eminent Luggage Corporation of Taiwan plans to expand in a big way in the Indian market. Plans include setting up a manufacturing unit and strengthening its presence by opening exclusive outlets. A team from the company led by vice-president Roger Cheng is currently in the country for talks with its JV partner in India, Ricossa Marketing, to ‘restructure’ its tie-up before going ahead with its manufacturing plans.

The joint venture, signed in 2001, so far has been purely for marketing and distribution of the Eminent range of luggage. ‘‘Once the restructuring is through, we will set up a 50:50 JV,’’ says Ricossa Marketing director Rakesh Ranka.

The manufacturing unit will in all probability be set up in Himachal Pradesh. Explaining the company’s decision to begin production in India, Mr Cheng says, ‘‘Like China, India is a fast developing market. The premium segment is growing at 8-10 per cent annually. Besides servicing the Indian market the facility would also help us produce more competitive products and service the Middle East and European markets.’’ The company has two manufacturing units in Taiwan and China.

In India, after the facility goes onstream, only 8-10 per cent of the inputs (zippers, locks, pullers etc) would be imported, resulting in a 40 per cent drop in prices. The company expects the factory to account for 40 per cent of sales in the basic range in India. The super premium range would continue to be imported.

Eminent has 180 dealers and is present in 10 cities through multi-brand outlets so far. It plans to be present in all Class A & B cities by next year through more dealers and exclusive stores.