Gini & Jony To Make UAE Export Hub

Mumbai: | Updated: Oct 30 2002, 05:30am hrs
In a strategic move, Gini & Jony Apparels Private Ltd is planning to make UAE its export hub to market its entire range of ready-to-wear kids apparels under the umbrella brand Gini & Jony to countries like Sri Lanka, South Africa, Australia, Kenya, Nepal and Kuwait in the beginning of 2003.

Says Gini & Jony Apparels Private Ltd managing director Prakash Lakhani: For the purpose, we are in talks with one of the leading international companies to enter into a 60:40 equity participation (where Gini & Jony will hold a majority stake) and jointly set up a sales and distribution facility there.

With this move, the company plans to export five to six lakh pieces of its ready-to-wear kids apparel range in the first year of operations. The company hopes to garner an additional exports turnover of Rs 15 crore within a year.

As for its Indian operations, the company is planning to foray into the kids accessories segment next year with plans to introduce a new range of watches, nightwear and swim suits among others targeted at kids aged between six months and 16 years, informs Mr Lakhani. We are currently in talks with HongKong and Singapore-based companies to outsource the new ranges from them, he adds.

However, Mr Lakhani refused to divulge further details on its international tie-ups.

In a bid to promote its ready-to-wear branded apparels for kids, the company is planning to expand its number of exclusive franchisee-operated outlets called Gini and Jony from 18 to 30. In addition, the company is also planning to beef up its distribution network by an additional 10 per cent, within a year, informs Mr Lakhani.

Says Mr Lakhani: The objective is to strongly focus on the eastern and southern markets, where we are not present currently. We are also planning to expand our existing range of shop-in-shop at premium retail outlets. Currently, we have around 180 multi-branded outlets and 42 shop-in-shops, spread across the western and northern markets.

According to Mr Lakhani: We expect our market share to grow from 30 per cent to 40 per cent within a year.

Says Strat Caps Securities India Pvt Ltd analyst Prashant Mulay: The Gulf market is receptive to Indian goods. Hence, an export hub at the UAE will give international exposure to the brand. Also, international volumes could give Gini & Jony economies of scale.