Strategic fit

Calcutta, March 12: Levi Strauss (India) Private Ltd, the Indian subsidiary of Levi Strauss & Co, has drawn up an aggressive expansion plan to open 100 to 150 franchisee retail outlets annually over the next three years. Currently, the company is present in the country through 100 exclusive outlets.

However, Levi Strauss will make significant investments in India after the government issues final clarifications on foreign direct investment in single brand retailing.

The company feels that allowing FDI will go a long way in promoting organised retailing in the country and encourage more direct participation from multinational retailers.

?But we don?t intend to start retailing on our own at this stage. We are keen to extend our business with the support of 25-30 strategic franchisee partners and focus on product innovation, brand building, retail design and key store operations,? said Shumone Jaya Chatterjee, managing director, Levi Strauss (India) Pvt. Ltd.

?The interest in India as a sourcing hub has started picking up in the post-quota regime. India is one of the prime sourcing locations in the Asia Pacific region, which is set to grow by leaps and bounds in the coming years,? Chatterjee added.

About 11 years back, Levi Strauss started India operations, which is today one of the leading growth drivers for the parent company.

The company is now planning to forge strategic alliances with its key franchisee partners to ensure the availability of quality products.

The popularity of the Levi?s jeans has spread beyond the metros and mini metros in the country.

The company is eyeing non-metro cities for expansion.

Levi Strauss?s domestic requirements are almost entirely met by sourcing from third-party manufacturers, most of whom are based in south India.

The Indian subsidiary has a sourcing office in Chennai that also exports garments in large quantities.

?We have already introduced accessories such as belts, bags and caps a couple of years ago and have launched eyewear last year,? said Chatterjee.

The company is planning to enter kidswear, footwear and innerwear through licensees during the first half of 2006.

It may also launch some products for women this summer.

The northern region tops the company?s growth chart followed by the western and southern states.

Since last year, the eastern region has generated good business for the company, particularly cities like Calcutta, Patna, Siliguri, Bhubaneswar and Darjeeling.