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June 14, 2001
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Money > Business Headlines > Report June 14, 2001 |
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Nike may just do it in IndiaReeba Zachariah Global sports goods major Nike, which is in India now through a licensing arrangement, is planning a wholly-owned subsidiary in Bombay. It is also looking to launch Cole Haan, the multinational's other major brand. "Nike is seriously looking at setting up a wholly-owned subsidiary here. India is one of the high-growth potential countries identified by our worldwide chairman. The country is among those singled out as future growth engines for Nike's global business," senior company officials told Business Standard. However, a formal decision is yet to be adopted on this. It is likely that the launch of Cole Haan, a premium leather footwear brand for both men and women, could be delayed till the new subsidiary is formed. Sources said the move could have been prompted by the fact that arch rival Reebok is a step ahead in India, despite the $10-billion Nike Inc surpassing it in the global arena. The Nike brand, which includes athletic footwear, apparel, equipment and accessories, reported a turnover of Rs 650 million in India for fiscal 2000-01. The company broke even in 1999-2000 and is looking at registering a 50 per cent growth this year. Nike entered the Indian market in 1995. Nike's footwear business contributes around 60 per cent to the turnover in India, apparel 30 per cent and equipment around 10 per cent. However, the apparel section is growing at a faster rate than the footwear business here, says Hemchandra Javeri, chief operating officer of Nike's Indian and South Asian operations. Nike Inc, which has set up a separate liaison office in Bangalore, sources apparel and exports from India. It did $80 million worth of apparel exports from India in 2000. The main export markets are Europe and the US. The company has about 100 exclusive outlets across the country and plans to increase this number by 30 per cent ever year.
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