Page Industries’ ambitious expansion plans in progress

Page Industries Ltd., which started commercial production at its new
unit at Manganapalya, Bangalore, on March 12, is the exclusive
licensee of Jockey International Inc. (USA) for manufacture and
distribution of the Jockey brand innerwear/leisurewear for men and
women in India, Sri Lanka, Bangladesh, Nepal and the UAE.
The company positions Jockey as a premium brand and offers its
products across three main segments, i.e., men’s wear, women’s wear
and leisure items. In 2010, Page Industries renewed its licence
agreement with Jockey for a period of 20 years through 2030.
The company registered 39 per cent growth to Rs. 529.12 crores in
sales for the first nine months of fiscal 2011-12. PAT amounted to Rs.
72.94 crores, registering a growth of 60 per cent over the same period
the previous year. Today, brand Jockey has its presence in 71
exclusive brand outlets and 19,000 plus retail stores in 1,200 cities
and towns across India.
This year, Page Industries has added another feather to its cap by
becoming the exclusive licensee of Speedo International Ltd. for the
manufacture, marketing and distribution of the Speedo brand in India.
Under this agreement, Page Industries will introduce a range of Speedo
products, including swimwear, water shorts, apparel, equipment and
footwear. While the agreement came into effect from July 1, 2011, all
the product categories will be available on the shelves from April
2012.
Mr. Sunder “Ashok” Genomal, Managing Director, Page Industries, says:
“Speedo is the No.1 brand and product choice for swimmers around the
world. While swimwear in India is still at a nascent stage, the
prospects for this category are exciting. We are proud to partner with
this brand and are sure that with Speedo’s product technology and
marketing leadership, juxtaposed with our expertise in manufacturing
and distribution, will do wonders to our partnership”.
Page Industries expects sustainable volume growth of 25-27 per cent
for the next four-five years. It has witnessed revenue growth of 40
per cent in the last five years on the back of strong volume growth.
The main growth drivers are change in consumer behavior and increasing
brand aspiration on the back of higher disposable income leading to a
shift from the unorganized to the organized sector. The company
currently has 20 per cent market share in the segment in which it
operates.
Page is planning to expand its capacity from the current 109 million
pieces to 133 million pieces by December next to support high volume
growth. It proposes to spend Rs. 35 crores for capacity expansion in
2012-13.
Page has expanded its retail shop reach and exclusive retail outlets
(EROs) from 13,000 and 40 in 2007 to 20,000 and 72 presently.
Currently the large 10 metros account for 50 per cent of sales.
However, the company is seeing higher growth in non-metro cities.
The Rs. 150 billion innerwear industry in India is witnessing rapid
growth, especially premium and super premium, led by discerning
consumer preference shifting to branded innerwear driven by rising
income levels, urbanisation, increasing awareness and higher
penetration of organized retail.