“We would prefer to acquire a brand that offers high value-added products and fits well within our strategy,” he added.

The company hopes to make a dent in the Japanese and European markets through this acquisition. It targets a turnover of Rs 27 crore for Men’s Club for the year ending March 2008, he said. Though the manufacturing has been outsourced to a plant in Southern Italy, Mr Piramal said, “We want Men’s Club to maintain a relative independence, as we want the brand to retain its authenticity.”

The group has a design centre at Milan and plans to make a foray in the US market within the next two years. The company supplies fabric and shirts to various international brands such as Flex, Polo Ralph Lauren, Paul Smith domestic ones such as Zodiac, Allen Solly and Louis Philippe and apparel brands for women such as those of Marks & Spencer and Zara. It will begin supplying trousers next year.

For its second-phase expansion, the company is looking to acquire 10-12 acres of land in either Tumkur district of Karnataka or Visakhapatnam. It will entail an investment of Rs 50-60 crore and the capacity will be doubled to 25 lakh pieces of fabric per annum, said Mr Piramal.

The plant would also support its garment unit based in Bangalore, Integra Apparels, which offers medium to premium brands and exports both menswear and womenswear to Europe, Australia and the US.

The company will undertake to invest Rs 150 crore over the next year in its expansion to build synergies between its fabric, garment and brand divisions. Funding will come from internal accruals, debt and the 50 remaining warrants of the company’s rights issue.

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