Fashion is part of his DNA. He has helped corporatize one of Indian fashion industries’ biggest brands - Ritu Kumar. Amrish Kumar is the man behind ‘Label’, who is also trying his hand at giving Indian music a leg up.
 

Amrish Kumar (30) is a Director in Ritu Kumar. In five years time, he hopes to make Ritu Kumar a truly international designer wear brand with interest in cosmetics and other products.

While kids his age were messing around with crayons and drawing books, Amrish Kumar got a ringside view of the real deal. Colour texture weaves and designs became a part of his vocabulary when he was barely in school. All of this courtesy his mother and India’s most recognised fashion designer- Ritu Kumar.

Amrish joined the company in 2000 and began the process of corporatising brand Ritu Kumar. But it was after his MBA in 2005 that Amrish gave the business a new direction by launching ‘Label’-their pretline. With prices ranging from Rs 1,000-5,000, Label focuses on the upwardly mobile young Indian women.

“ The formula is a tricky one because the market is a tricky one. It is not that easy selling fashion items into this market yet. Also, you have got the likes of Armanis and Diesels and others that are coming in to compete for the same section of your market very soon. Our customers are still culturally very sensitized. They still have elements of a consumer that perhaps other countries don’t have with respect to drawing on their heritage,” said Amrish Kumar.

With 22 boutiques in Delhi and Mumbai, Kolkata, Chennai, Amritsar and Chandigarh; the company has a turnover of Rs 27 crore and is growing at a steady 8-10% for the last few years. While the bridal market is the lifeline for Indian designers, Amrish and his team of designers are hoping to create a new segment. Going international is also on the cards as a slew of product extensions including fragrances, which should hit the market by June.

“Up on the list is a multibrand outlet kind of look and a wider distribution idea is up on the list. We are also exploring a couple of other markets. I am not talking just with respect to supplying a few stores here and there. I am interested in entering with a distribution of range which alludes to economy or scale advantage,” he added.

While design is a part of his genes, music is in his blood. His current passion is giving Indian artists a platform to create original content. He is hoping his record label Mummy-Daddy records and his first album will strike the right cord with the audience. 

“I have spent two years collecting music, I developed a bit that myself. I have got tie-ups with people and have managed to get people partnering me. So, next month we are launching Mummy-Daddy records and the first album. Hopefully, it will be the first of many. I am hoping after this one launches there will be people with deeper pockets who come in and want to do business, who partner with me and then achieve the final goal which is to make it work,” he commented.

Excerpts from CNBC-TV18’s exclusive interview with Amrish Kumar:

Q: Customers drawing on their heritage should make life easier for someone like you.

A: Yes it does and that should make life easier for all of us in the Indian space.

Q: So why hasn’t it?

A: I think it has. A large section of the people come from the wedding market, which to me is the only market.

Q: One hasn’t really heard of great success stories from the pretlines from anybody in the Indian fashion business. It still continues to be largely dominated by the wedding business. 

A: We are a hugely price sensitive market at this stage. The conspicuous consumption and premium pricing, with respect to prêt production, has not hit yet. It will, given a few years, but all comes down to when that time comes and whether you in the correct place to exploit it.

Q: How soon will we see that happen?

A: Hopefully, very soon. In the US, we have started. We have one store there. We are going slowly and are developing our distribution range. So it’s begun over there already.

Q: Is there a need for capital? Are you close to tying up with any of the private equity players that have been talking to you?

A: No, but I do see the need in about three-five years. At that point, I am going to look for raising capital. We are going to have well-entrenched international brands in India by then.

Q: Do you already have them?

A: Yes and no. I wouldn’t say they are well entrenched yet. There are a couple of big brands and big designer labels like luxury brands. They are doing well for themselves but they tend not to be in the apparel sector.

Q: What is the size of the business going to look like in three years? That seems to be the target that you are working towards. What is the size of the business going to be like? How rapidly do you see the Indian fashion business growing?

A: I would like to be 2.5 times in my topline in about five years time.

Q: What is the current topline?

A: We are around 50 at the moment. So, we are able to multiply that and it cannot come of the Indian market. I am quite clear on that in the shorter period. We will need to have distributional arrangement and will need to have new product lines.

Q: Who is funding the music venture?

A: It’s little bit of a bank borrowing ceiling and a little bit of funding myself and a little bit hoping it comes back. One of the great things about the music business today is that you can make it a very low cost kind of project, at least the production of putting it together. But the marketing is where it all starts to bite a bit. So, I am trying to team up with people. MTV have been a great sport; they swallowed the idea I don’t know how. I didn’t even buy them a drink and it was amazing. They want to promote it a bit and Times Music has come out with distribution and we will see what happens.