India : Garden Vareli To Tap Market In Sri Lanka, Bangladesh

Garden Vareli, the saree and fabric brand belonging to Garden Silk Mills Ltd, is planning to tap the markets in the neighbouring countries of Sri Lanka and Bangladesh.

The company which manufactures yarn and fabric at Surat, intends exporting its brand within a year. According to the Chairman and Managing Director, Garden Silk Mills Ltd, Mr Praful Shah, "the purpose is to be present in these countries before the WTO agreement comes into effect."

In the past, the company had taken its fabrics to countries in the Gulf and Soviet Union, but this is the first time that its sarees brand will be travelling to the neighbouring countries where it already enjoys a strong equity.

"There have been importers who have been buying our brand and supplying it to these markets but now we intend doing it ourselves,'' states Mr Shah.

Registering a turnover of Rs 500 crore, the company floated a yarn division in 1994 and continues to supply to weavers. Its fabrics division comprises the retail, bargain and wholesale units.

The company has been relying on its bargain sales in places where it does not have a strong retail presence. "We usually have more of our sales in north India since we do not have a strong retail presence in these parts,'' says Mr Shah.

Holding its discount sales nearly two times a year in smaller cities such as Chandigarh and Kanpur, the company wants to reach out to those markets where it still lacks adequate retail presence.

The company has also ventured into the readymade segment with shirts and salwar kameezes. "We believe the readymade market is still disorganised and difficult and we will be present only in a limited way,'' says Mr Shah.

Operating through franchisee operations with almost 200 retail outlets across the country, there are also a limited number of company-owned stores.