Mumbai: Esprit Global, a $5billion international lifestyle products company, is planning to increase its sourcing of apparel from India. The company currently sources a small portion of its requirement from the country but this may soon change.
“As of now, we source 5% of our global requirements from India. But I can assure that it will double in one year’s time and will only keep growing,” said Heinz Krogner, chairman and group chief executive officer, Esprit Global.
The maker of children’s wear, women’s wear, men’s wear and sports wear has appointed an executive to identify vendors who can supply its global needs.
The Aditya Birla group, the exclusive franchisee for Esprit’s garment and accessories range in India, and a maker of apparel itself, has so far not been using its facilities to supply the global major’s needs. “We have just started trial production for them,” said Vikram Rao, business director, textiles and apparel, Aditya Birla Group.
While a major portion of Esprit Global’s requirement is sourced out of Europe and China, Krogner said that growing demand was forcing the company to look at other options including India.
Even as the company looks at India as a sourcing base, it is growing its presence in the country through its partnership with the Aditya Birla Group’s Madura Garments. “In the past year and a half, we have established 14 stores across the country but we do believe that we have to speed up expansion from now on,” said Thomas Grote, president, Esprit Global.
“We see India as a key market in the next 8 to 10 years.” Over the next two years, Espirit will expand its network of stores to 60-75.
Apart from expanding the store network, the company is also expanding its range of products. And, in addition to stand-alone stores in the main shopping districts, it plans to have a presence in malls too. “We are here to build the brand,” said Grote.