Hide sign likely to belt 3 arms into single entity
LUXURY leather goods manufacturer Hide sign is likely to consolidate its three business divisions into a single private limited company in the wake of Louis Vuitton’s decision to pick up 20% stake. Hide sign is also expected to effect structural changes in its manufacturing system to bolster productivity. The Puducherry (formerly Pondicherry) based company will set up a new tannery and two new factories.
“We will be consolidating our three divisions — Akela, Hidesign and Hidesign Boutique — and make it a single private limited company. Apart from that we will be re-structuring the factory and the equipment in order to improve the quality as well as quantity of production, for which we will be bringing in the Louis Vuitton system” said Dilip Kapur, president of Hidesign.
Hidesign Boutique carried out the Indian operations, including front end retail, while Akela and Hidesign were 100% export-oriented manufacturing units.
Mr. Kapur said that a team from Louis Vuitton has completed a technical audit of Hidesign and would be aiding the company in the structural changes. “We are helping set up a factory for them in Puducherry and for us, the association with Louis Vuitton has meant shortening die learning curve. We want Hidesign to be affordable luxury, widi quality akin to that of Louis Vuitton but maintaining the current prize range,” he said. Hidesign, which currently has a tannery dose to Chennai, is now planning to set up one more at Ranipet (Tamil Nadu} with an investment of dose to Rs 20 crore. “At this facility, we will be doing only vegetable tanning. We want to experiment on Indian vegetable tanning techniques,” Mr. Kapur said.
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