Hakoba lines up expansion

MUMBAI: Embroidered textile and apparel maker Hakoba Lifestyles is planning a number of brand extensions in the next one year including special lines targeted at the menswear segment, home textiles and lingerie.

The company is also planning a major retail foray which will see it expanding its exclusive outlet network from 50 stores this year to 200 by ’09. Its presence in multi brand outlets will also be ramped up from 200 to 800 in the same period.

The new range of products will be retailed at separate outlets meant only for lingerie and home textiles as well as in large format stores, 10,000-15,000 sq feet, that Hakoba plans to set up next year. Hakoba, which entered the premium womenswear segment with a new range of sarees, is looking at increasing the contribution of it apparel business in the next year.

“So far our products and pricing have been in the mid-range of the womenswear segment. Now, we are tapping the premium segment too. Soon we will set up a separate sub-brand called something like Hakoba premium or Hakoba club which will sell through its own showrooms,” said Rajkumar Sekhani, director of Hakoba Lifestyle.

Mr Sekhani’s Pioneer Group acquired the Hakoba brand in ’01, Hakoba is currently a Rs 22-crore company. Sekhani hopes to grow it to Rs 150-175 crore by ’09. Hakoba Lifestyles will go in for an IPO in the future to raise funds for its expansion plans.

Hakoba Lifestyle currently has a presence across 26 cities in the country and is looking at setting base in the Tier 2 and 3 cities. The company also has plans to enter the retail apparel market in the Middle East soon.

At present, around 70% of Hakoba’s needs are sourced internally from Pioneer’s six factories across the country. With Hakoba in an expansion mode Pioneer will also be adding to its existing capacities to need the increased demand.