Sara Lee Plans Major Entry Into The Indian Apparel Market

Consumer products and foods major Sara Lee Corporation of the US, which markets brands like DKNY, Fila, Bali and Wonderbra, is planning a major entry into the Indian apparel mart.

The company is looking at various options for its proposed entry, and could adopt the wholly-owned subsidiary route though it is not averse to roping in local partners. It has, however, ruled out the possibility of out-licensing the brand.

Shishir C Babu, chief operating officer of Sara Lee Branded Apparel said, “We are intently studying the Indian apparel market. We are yet to formalise the exact structure for our apparel entry.”

He said the company is in talks with leading management consultants to advise the multinational for its proposed foray.

For a start, Sara Lee is looking at launching Hanes, its mega-casualwear brand, the Champion brand of sportswear and Playtex brand of innerwear in the country. The biggest brand in its portfolio is Hanes, which competes with Jockey worldwide.

According to Babu, the strategy is to have a presence in the mass market as well as the premium segment of the market.

Sara Lee is looking at India and China as the key markets for special focus. Its biggest market, the US, currently accounts for nearly 70 per cent of the company’s sales.

The company, which has grown globally through acquisitions, was also open to the option in India as well.

“If worthwhile opportunities come, we are open to it as well,” Babu said. However, he declined to speak on Sara Lee’s investment plans for the apparel business.

Sara Lee worldwide has three highly focussed business: food and beverages, intimates and apparel and household products, and its largest division is Sara Lee Branded Apparel.

Sara Lee Corporation already has a presence in India through Godrej Sara Lee, its joint venture with the Godrej group, for household products.

Its personal care products like Brylcream and Kiwi Shoe polish is distributed through the South based TTK group. It may be noted that Sara Lee has converted its joint venture with TTK into a wholly owned subsidiary.

Earlier, Sara Lee had a presence in the bakery business when it acquired Nutrine’s biscuits business.