The $18.3 billion Chicago-based Sara Lee Corporation on Thursday announced that it is foraying into the Indian apparel market.
Sara Lee Apparel (India), its 100 per cent subsidiary, has introduced Hanes men's innerwear brand. Hanes is Sara Lee's biggest apparel brand with annual sales of $2.2 billion in 2003.
Krishna Ramanathan, country head & director, Sara Lee Apparel (India), said," The Indian consumer is rapidly evolving and the retail landscape in India is also changing very fast. Given the current scenario, India is emerging as a key strategic market for Sara Lee."
The company will be bringing into India its other key global brands -- Hanes Her Way, Champion, Playtex and WonderBra, to name some, in future.
The men's innerwear market is estimated to be worth some $560 million (Rs 2,500 crore), of which the branded market is valued at $ 150 million (Rs 700 crore) and is projected to grow by 8 per cent year.
The Hanes range of products will be locally manufactured and has been designed specially for the Indian market based on in-depth research and consumer 'fit tests' in conjunction with the National Institute of Fashion Technology.
Priced at between Rs 60 and Rs 250, the company will roll out the Hanes range in a phased manner nationally.
"Sara Lee is also looking at setting up a sourcing (buying) set up within the Indian arm to cater to its global apparel requirements," said Shishir C Babu, chief operating officer, Asia business development, at Sara Lee Branded Apparel.
Sara Lee is one of the few companies that have adopted the wholly owned subsidiary (direct set up) route to start operations in the country. Most apparel companies have entered the Indian market through the brand franchisee route.
Also, this is the first time that Sara Lee has entered the Indian market on its own without entering into strategic alliances. For its home and body care business, it tied up with the south India-based TTK group, well known for marketing the Prestige range of home appliances.
It currently operates this business on its own and markets leading brands like Kiwi shoe polish, AmbiPur and Brylcreem. Sara Lee also has a joint venture with the Rs 4,000 crore (Rs 40 billion) Godrej group in the insect repellant category with brands like Good Knight and Hit.
Sara Lee Corporation has three businesses -- food and beverages, apparel and household products. In India, it had a presence in the bakery business and acquired the biscuits business from Nutrine Confectionery but exited the market a few years back because of poor performance.
Explaining this, Babu said, "We did not want to have an alliance for the apparel business as we felt that we could have a better control of the business and we have enough capabilities to manage it on our own."
