Egana Inter Gold Ltd (the Indian subsidiary of Egana International) chief operating officer Biren Vaidya told The Financial Express that total outlay of the project would be Rs 20 crore and it had already received the requisite clearance from the Reserve Bank of India and Foreign Investment Promotion Board (FIPB).

He said the company had identified six Indian vendors to raw materials like straps, movements, dials, cases and hands. The vendors would have to be cleared by the International Control Department of Egana.

Vaidya said the location of the factory was yet to be finalised. However, it would be somewhere in Gujarat or Maharashtra, he added.

Vaidya said, ``India is the right choice for Egana to set up a base as the country offers cost-effective sourcing solutions, besides cheap labour.'' Egana currently has 28 brands both in watches and jewellery with over 20 designs for each. The company has test-launched some of its brands including Esprit (both jewellry and watches) and Pierre Cardin watches. ``We have soft-launched these products in India and the response is very encouraging,'' he said.

Egana brands include Esprit, Amaretta, Zentra, Bulova, Esprit Timewear, Pratina, Pierre Cardin, Bulova, Cerruti 1881 and Stefanel besides a few signature and sports lines.

Vaidya said India was an important market for the company which was trying to create market awareness about its brands. To this end, Egana would widen its distribution network to 300. For the last year the company was focusing only on awareness programme and brand-building in India.

Before August the company would launch three more new brands-including Carrera-in India. Currently, it has three brands under Esprit (Timewear) Esprit (jewellery) and Pierre Cardin watches. ``By 2001, we expect to have 10-12 brands in the country and then we will set up World of Egana boutiques,'' he added.

Egana International is a multinational company with a presence in 48 countries. It makes branded timepieces, jewellery and premium leather accessories.