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Delsey could make India a production hub: Guenther Trieb, CEO, Delsey

NEW DELHI: Delsey, a French luggage manufacturer, has chalked out an aggressive expansion plan to triple its business in India in two years and may set up a manufacturing unit in the country, its group CEO Guenther Trieb said. "We are very much looking to make India a manufacturing hub for ourselves, not only to address the Indian market, but also to feed our global needs from here," he told ET. 

To establish itself in the Indian market,
Delsey plans to add some 1,000 stores in the next 3-5 years to its existing network of 150 outlets, bring its global collections to the country, lower prices of its products to match established brands here and increase spending on advertising and marketing, Trieb said. "Our main plan is to set up as many customer purchase points as required in order to come to the notice of the customers," he said. 

The company will compromise on its margins, compared with its mainstay 
European market, to make them competitive in India, pricing its products at around 5 per cent premium to established brands, Trieb said. "Currently, India contributes only 1 per cent to our international business. But looking at the size and the potential of the market, we want India to contribute 10 per cent to our business," he said. He refused to share the kind of investment Delsey plans to make in India. 

The Indian 
luggage market is estimated at Rs 2,300 crore, with branded products accounting for Rs 1,300 crore. 

Delsey has been in the 
Indian market since the 1990s, but it started aggressive expansion only 18 months ago when it revamped its product line and plans for the market. Trieb said the brand has been growing at 600 per cent in the last couple of years and hopes to triple its sales every year for at least two years. The brand is already available in many small cities besides metros and large cities through 150 stores.