Eliminating middlemen, textile-man clothes north IndiaMay 20th, 2010 - 1:33 pm ICT by IANS
By Jaideep Sarin
Chandigarh, May 20 (IANS) He has a direct connect with his customers, without the usual chain of distributors, dealers and retailers. And that is the business model that has worked well for him.
Arun Grover has built a unique Rs.2.5 billion (Rs.250 crore) business and a brand for himself through his Amartex chain of stores — manufacturing and selling clothes and home accessories.
The Amartex brand reaches millions of middle class customers through “company owned, company operated” (COCO) stores spread across north India.
Initiating the concept of direct retailing in 1997, the company opened its first outlet at the factory premises in Panchkula, 10 km from here. It now has 50 outlets across Punjab, Haryana, Himachal Pradesh, Chandigarh and other adjoining states.
“We started with just one 2,000 square-feet store in 1997. Now we have over 250,000 square feet of stores across north India,” Grover told IANS here.
Amartex has planned to open 25 new stores this year. “By 2012, we are planning 100 stores in north Indian states alone. Only after that will we work for a pan-India presence,” said Grover.
Explaining his COCO model, Grover said: “Middlemen like distributors, dealers and others have no principles other than just making profits. Even if we were offering products at good prices, the middlemen were not selling enough.”
He said his company’s concept was to eliminate this chain and bring quality products to our customers directly. This, he added, has ensured that the products are reasonably priced and the chain does not jack up the price of any product.
“Our concept is that we should sell more and earn more. Not that we should earn more by selling less. We don’t give any franchisees also.”
Starting essentially with clothes, Amartex stores now offer home accessories - from door-mats, pillows, napkins to curtains - and grocery items under its ’shoppers world’ stores. Each store has a variety of over 5,000 products.
The product range is from Rs.50 to Italian-brand light-weight fabric suits priced at Rs.5,000.
“The cost factor is very important. Our USP is value for money. We have to provide the product, offer a good price and ensure timely availability to sustain ourselves even as department store chains and MNCs get into the scene,” said a confident Grover.
As a textile brand also, Amartex has grown from manufacturing just 4,000 metres of fabric every month to over three million metres now. A senior Haryana bureaucrat, at a function recently, stated that Grover is the “Dhirubhai Ambani of the north”.
Having started with just a manufacturing unit at Panchkula, Amartex now has seven manufacturing units spread across Haryana, Punjab and Himachal Pradesh. It has also outsourced manufacturing and other work to scores of other units and experts as well.
Amartex has its full-fledged design studio in Gurgaon, with Grover’s wife, Sangeeta, looking into the minutest details of designing. It engages artisans from Erode (Tamil Nadu) for bed-sheets, Andhra Pradesh’s coastal belt for Ikat fabric, Salem (Tamil Nadu) for cotton check fabric and Rajpura (Punjab) for ‘Phulkari’.
Amartex has launched high-end brands - ‘Groviano’ for men with Italian design and ‘Diana’ for women.
Having a nearly 2,000-workforce with it, Grover claims that fundamentals of the ‘Team Amartex’ are so strong that there is not even a single labour case against the company.
(Jaideep Sarin can be contacted at firstname.lastname@example.org)
- Sahara enters FMCG retail biz on I-day - Aug 13, 2012
- Punjab's Sonalika tractors to till South America and Africa - Oct 01, 2010
- NSL to enter branded apparel segment by Diwali - Aug 31, 2010
- Essar Hypermart to sell 1 mn tonnes steel through retail - May 18, 2012
- Fearing raids, Chandigarh sweet shop owners move base - Oct 23, 2011
- Arvind eyes Rs.400 crore revenue from new business format - Jun 17, 2011
- We empowered Fabindia family in 50th year: William Bissell - Jan 02, 2011
- BJP opposes FDI in multi-brand retail - Nov 24, 2011
- Brand hungry? Beware of counterfeits (Feature) - May 04, 2012
- Assam farmers losing interest in rice cultivation - Mar 15, 2012
- Himatsingka to foray into Indian home fabric market - Nov 09, 2010
- HMSI launches its second 110 cc bike for mass market - May 15, 2012
- French company helps Indian farmers get better yield - May 11, 2010
- 'India single most important focus' for US luxury brand Zippo - Jun 06, 2012
- Online retailer Yepmeshopping plans own clothing labels - Jan 21, 2011
Tags: chandigarh, class customers, door mats, factory premises, grover, haryana, home accessories, indian states, jaideep, man clothes, middlemen, napkins, north india, offering products, owned company, rs 2, rs 250, sarin, shoppers world stores, square feet store