Acme Plans To Offload Stake To Boost Provogue

Mumbai, November 27: | Updated: Nov 28 2002, 05:30am hrs
Acme Clothing Ltd, manufacturer of Provogue the latest in premium mens wear is planning to offload around 15-20 per cent stake to a strategic partner to infuse funds into the company. It is also in the final stages of negotiations with Bhatia Brothers for marketing Provogue in the overseas market, specially in West Asia.

When contacted, Acme Clothing Ltd managing director Nikhil Chaturvedi said, we are open to bringing in a strategic partner, mainly for the brand, Provogue. As of now, we havent been able to identify any company for it.

Projected at the premium segment, the company has been successful in building the brand Provogue and creating a niche for itself in the fashion industry. Through an aggressive marketing strategy and association of the brand with film personalities, Provogue has become synonymous with glamour, class and colossal accomplishment within a short span of time.

Provogue competes with the likes of Allen Solly, Color Plus, Dockers and Levis in the Indian casual wear brands market.

Industry sources said, as part of the companys strategy to take the brand to the international arena, the company is looking for a financial partner. Initially, the company is eyeing an investment of around Rs 12-15 crore and, subsequently, it plans to offload part of its stake. It will, however, retain the majority stake. The company has already been approached by a number of financial investors.

Last year, Provogue contributed around Rs 28 crore to the total turnover of the company and for the current year the company has set a target of achieving a turnover of around Rs 44 crore. At present, Acme has 31 exclusive showrooms scattered all over the country. The company plans to set up 19 more showrooms within the next year. It is also planning to set up an exclusive showroom in Dubai and is expected to garner around Rs 20 crore from the West Asian market within a period of two to three years.

The company has set a new fashion trend in the last two years by launching polynosic shirts, nylon-cotton shirts and polyester moleskin trousers in the domestic market. Provogues product range encompasses shirts and trousers, both casual as well as semi-formal, in addition to accessories.