Arvind Lifestyle Brands is all set to enter the lingerie and undergarments category in India which is estimated at Rs.18,000 crore with inner wear brands Hanes and Wonderbra. Arvind has signed a deal with US based Hanes Brands, under which Arvind has got the licence to manufacture and distribute inner wear brands Hanes and Wonderbra in India. Though these brands are already in India since last five years and competing with brands like Jockey and Rupa, it has clocked a turnover of only Rs.45 crore and has got 3 per cent market share in the inner wear category.
Arvind Lifestyle under this agreement will be buying out the existing stock of Hanes and Wonderbra for Rs.15 crores.
Arvind with this licensing agreement is expected to be a major player in the inner wear segment which is growing at 18 per cent. The men’s inner wear segment is valued at Rs.7,200 crore and women’s inner wear segment is valued at Rs.10,800 crore. 40per cent of both the categories belong to the unorganised players and rest of the market share is with the branded category.
Arvind Lifestyle is planning to sell the Hanes brand products like FMCG products. According to Chairman and MD of Arvind Lifestyle Brands, Sanjay Lalbhai, “Hanes would be sold like an FMCG product, as we have a wide distribution network. We intend to increase the points of sale from the current 5,000 to 15,000 in the next three years.” Arvind is targeting a turnover of Rs.500 crores in the next four year with the acquired brands. Arvind Lifestyle Brands has recently been very aggressive in the market by acquiring brands like Next and Nautica and by entering into licensing agreements to manufacture and distribute the Ed Hardy brand in India.