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Arvind abandons desi brands

Reeba Zachariah in Mumbai

Rarely does an Indian company say adieu to its desi brands and decide to promote foreign brands. But that is what Arvind Brands, part of the Lalbhai group, is doing.

It is virtually killing or phasing out most of its own brands, even well-known ones like jeans and cottonwear brand Ruf and Tuf.

Instead, it is planning to focus on international brands like Arrow, Lee and Wrangler, for which it holds the marketing rights in India.

The company will pull the plug on the low-end Ruf and Tuf brand, which is facing stiff competition from the unorganised sector.

It will also stop promoting three other brands-Bay Island, Ruggers and Flying Machine. Arvind Brands will retain just two of its indigenous brands, Excalibur and Newport.

Arvind is also planning to enter the children's-wear segment soon. For this, it will launch Healthex, also an international brand, exclusively for children.

Darshan Mehta, president, Arvind Brands, told Business Standard:"Ruf and Tuf is facing stiff competition from local players at the lower end of the apparel market. With high excise duties, the brand is not contributing enough margins and will eventually die a slow death."

The Ruf and Tuf brand was initially launched because Arvind Mills enjoyed economies of scale in denim manufacturing.

"Brands like Arrow, Lee, Wrangler, Excalibur and Newport will be our national power brands. The company will support these brands by investing in their advertising, marketing and promotions. These brands are large in terms of size, strength and competitive positioning," Mehta said.

"The other category in the portfolio will be brands like Bay Island, Ruggers and Flying Machine, on which we will not be focusing any more," Mehta explained.

The US-based V F Corpora- tion owns the Lee, Wrangler and Healthex brands and has licensed them to the Bangalore-based Arvind Brands. Arrow has been licensed by the Arrow Company, a division of Cluett Peabody & Co Inc, US.

Arvind Brands has three channels of distribution--exclusive brand stores, multi-brand outlets and department stores. The company is in the process of expanding its distribution base this year.

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