Murjanis line up more premium brands for India
ARUN KUMAR

MOHAN MURJANI, who made his name signing up global designer brands for upscale US customers, is now trying to do the same in India, as people in the country of his origin get increasingly interested in premium brands.

After the group introduced Tommy Hilfiger's goods in India, single-brand outlets are expected next year for apparel and accessory labels like Jimmy Choo, French Connection UK, Gucci, and Calvin Klein.

The New York-based Murjani group, which is the master licencee for Tommy Hilfiger, has already entered into similar agreements with five leading global brands and is in the process of increasing this number to 12 by the first quarter of 2007. Consumer behaviour in the last one year clearly shows that the appetite for the premium brands in India is very high, Vijay Murjani, managing director of Murjani Brand Holdings, told Hindustan Times.

From its nine outlets located in seven cities, Tommy Hilfiger has reported revenues of Rs 45 crore in the last fiscal year in apparel alone, resulting in an average revenue of Rs five crore per outlet, Murjani said. This is expected to increase by around 50 per cent to Rs 65 crore in the current fiscal year. Besides the apparel business, it is also present in accessories like watches, fragrances, shoes, underwear and eyewear. Last fiscal, Tommy Hilfiger's accessories' segment reported revenues of Rs 25 crore.

In 1976, Mohan Murjani, Vijay's father and group chairman, launched Gloria Vanderbilt and became the first Indian to develop and market major designer brands in the international marketplace. Over the years, the group has developed and launched various major global brands, such as Coca-Cola Clothes.

“We have already signed the master licensing agreement with the five such brands like Gucci, Calvin Klein and Jimmy Choo and French Connection UK, among others, and are expected to have another five to seven in our portfolio by the first quarter of 2007,” said Murjani. For these new brands, Murjani will roll out 25 to 30 outlets in next 12 to 18 months, which will be in addition to the group's expansion plans for Tommy Hilfiger.

Tommy Hilfiger's Indian foray was started under a 50:50 joint venture with the Arvind group — Arvind Murjani Brands Pvt. Ltd in 2004. Bolstered by the performance, the company will increase its presence in five more cities and the number of outlets will go up to 25 in next one year. It plans to add another five cities, said Shailesh Chaturvedi, CEO of Arvind Murjani Brands Pvt Ltd. “Our target to cross Rs 100 crore mark in 2007,” he added. The all-India consumption pattern reflects that Delhiites are the biggest spenders.

Brand business : The group introduced Tommy Hilfiger's goods in India last year Single-brand outlets are expected next year for apparel and accessory labels like Jimmy Choo, French Connection UK, Gucci, and Calvin Klein The group is the master licencee for Tommy Hilfiger It has already entered into similar agreements with five leading global brands and is in the process of increasing it to 12 by the first quarter of 2007.