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Business News/ Industry / Retail/  Aditya Birla’s Nuvo textile unit looks to tap linen demand
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Aditya Birla’s Nuvo textile unit looks to tap linen demand

Firm's clothing supplier Jaya Shree Textiles introduces cheaper linen blends as well as linen products for women

Jaya Shree, which sells linen and wool to Aditya Birla Nuvo Textile and Arvind, plans to generate 60-65% of its sales from linen in three-four years from 50% currently. Photo: Pradeep Gaur/MintPremium
Jaya Shree, which sells linen and wool to Aditya Birla Nuvo Textile and Arvind, plans to generate 60-65% of its sales from linen in three-four years from 50% currently. Photo: Pradeep Gaur/Mint

Bangalore: Clothing supplier Jaya Shree Textiles, a unit of Aditya Birla Nuvo Ltd (ABNL), is increasing the distribution of its linen business, introducing cheaper linen blends as well as linen products for women, as it looks to tap growing demand for the premium fabric.

Jaya Shree, which sells linen and wool to ABNL’s Madura Garments, Arvind Ltd and other large retailers, plans to generate 60-65% of its sales from linen in three-four years from 50% currently, managing director S. Krishnamoorthy said in an interview.

The company expects to generate 2,000 crore in annual sales within four years, compared with estimated sales of 1,300 crore in the year to 31 March, he said.

“We’ll maintain our wool business, but most of the growth is going to come in linen. Wool isn’t growing and even the current players are struggling. Whereas linen is an emerging segment and growing well," Krishnamoorthy said. “We’re getting into women’s wear this year. We’ve started selling blends like linen-wool, linen-cotton to make it more affordable. But most of our customers are at the top end and we will keep it like that."

Jaya Shree, which owns the retail chain brand Linen Club, is one of the few suppliers of both linen fabric and ready-made linen in India. Linen is 40-50% more expensive than other widely used fabrics such as cotton, and accounts for less than 3% of India’s textile market that was worth $58 billion in 2011, according to a report by consultancy Technopak Advisors.

“A lot of people want to get into linen, but it’s not easy because the entry barriers are high. The fibres are all-imported and it’s tough to pick out the right ones. The spinning process is completely different from other fabrics, the technology is different, and there’s a lack of skilled manpower who know how to do the linen business," Krishnamoorthy said.

Over the next three years, the company expects to add 25-30 Linen Club stores and about 150 other outlets every year to its distribution reach, he said.

Jaya Shree has 100 Linen Club stores, all franchised, and its products are sold across 3,000 external outlets. The company also sells to international brands such as Kenneth Cole and Tommy Hilfiger.

“We’re going to remain focused on the domestic market," Krishnamoorthy said. “There’s enough demand here and it is more profitable than international."

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Published: 01 Apr 2014, 12:37 AM IST
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