DLF Brands on expansion mode
New Delhi: DLF Brands, a subsidiary of real estate giant DLF Ltd, has aggressive plans to expand its retail business by introducing more international brands into India, besides opening at least 50 new outlets every year in the country.
According to a top official, DLF Brands is in talks with a European cosmetic brand for their India entry.
"We are currently talking to several international brands to bring them into India. In the next 2-3 months, we will announce partnership with a European cosmetic brand," DLF Brands Chief Executive Officer Dipak Agarwal said without sharing details.
The company currently operates standalone stores for 11 global brands in India, including Armani, Boggi, Sunglass Hut, Alcott, DKNY, Claire and Mothercare.
Commenting on the expansion plans for the existing brands in its kitty, Agarwal said: "We will open at least 50 new outlets every year." He, however, did not share details about the company's investments.
The retail company also has plans to launch multi-brand retail stores to sell international fashion labels under one roof, with plans to open up to five such stores every year.
Finance Minister Pranab Mukherjee in the Budget has raised abatement on branded garments from 55 percent to 70 percent, thereby bringing down the effective excise to 3.6 per cent from 4.5 per cent earlier. The overall excise duty rate has also been increased to 12 percent from 10 percent earlier.
Talking about the impact of Budget 2012-13 on branded garments, Agarwal said the cost of importing garments is also very high in India.
"Branded garments in India attract very high duties, which in turn makes it difficult for companies to pass the cost on to the consumers. High prices also adversely impact demand and volumes," he said.
Agarwal said in the last 4-5 years, duties on imported branded garments have gone up from 15 percent to around 30-35 percent.