TCG eyes bigger retail footprint through Garden Vareli
Times of India | 10 May 2025
123 Kolkata: The over-$10 billion The Chatterjee Group, which is predominantly in the B2B space, is betting big on retail through Garden Vareli, which it acquired in 2021 through MCPI.The Purnendu Chatterjee-led group is demerging the fabrics division of Garden Silk to enter the women's ethnic wear segment. It is also considering taking its retail venture to the global market. Currently, Garden Vareli has a token presence in retail through sarees, with a revenue of Rs 100 crore.Garden Vareli director and MD and CEO of MCPI, Debi Prasad Patra, said the group has set a target of Rs 2,000 crore from the retail arm of Garden Vareli by 2028-29. Currently, Garden Vareli has a revenue of Rs 3,500 crore, with yarn accounting for more than 95% of the revenue, while fabrics account for less than 5%.Patra said the fabrics division would be called Garden Silk Fashions (P) Ltd, while the yarn division would remain as Garden Silk Mills (P) Ltd.Both would be subsidiaries of MCPI. "The demerger will be complete in the next 3-4 months. This will be TCG's major expansion into textiles and fabric. We have also appointed a CEO for fabrics," he added.Chatterjee, in his message, pointed out that Garden Vareli would have a very strong B2C component. Patra said they were planning both horizontal and vertical expansion in retail.Currently, Garden Vareli is serving the mass value saree segment with a price point of Rs 1,000, but going forward, it will launch mid-premium sarees of up to Rs 5,000. It will also enter ethnic ranges like salwar, kameez, dupatta and nightwear for women. According to him, it will have ranges from blended yarn, synthetic to cotton wear and pure silk.Patra said the company would also look at men's wear with new sub-brands, along with accessories like shoes, cosmetics, bags, jewellery and others. "Going forward, 40% of our revenue will come from sarees, 40% from ethnic wear and the remaining 10-20% will come from non-apparel business. It will also set up exclusive brand outlets (EBOs), which will be a mix of company-owned and franchise-driven brick-and-mortar presence, along with multi-brand outlets, modern retail and e-commerce," Patra said.Kolkata: The over-$10 billion The Chatterjee Group, which is predominantly in the B2B space, is betting big on retail through Garden Vareli, which it acquired in 2021 through MCPI.The Purnendu Chatterjee-led group is demerging the fabrics division of Garden Silk to enter the women's ethnic wear segment. It is also considering taking its retail venture to the global market. Currently, Garden Vareli has a token presence in retail through sarees, with a revenue of Rs 100 crore.Garden Vareli director and MD and CEO of MCPI, Debi Prasad Patra, said the group has set a target of Rs 2,000 crore from the retail arm of Garden Vareli by 2028-29. Currently, Garden Vareli has a revenue of Rs 3,500 crore, with yarn accounting for more than 95% of the revenue, while fabrics account for less than 5%.Patra said the fabrics division would be called Garden Silk Fashions (P) Ltd, while the yarn division would remain as Garden Silk Mills (P) Ltd. Both would be subsidiaries of MCPI. "The demerger will be complete in the next 3-4 months. This will be TCG's major expansion into textiles and fabric. We have also appointed a CEO for fabrics," he added.Chatterjee, in his message, pointed out that Garden Vareli would have a very strong B2C component. Patra said they were planning both horizontal and vertical expansion in retail.Currently, Garden Vareli is serving the mass value saree segment with a price point of Rs 1,000, but going forward, it will launch mid-premium sarees of up to Rs 5,000. It will also enter ethnic ranges like salwar, kameez, dupatta and nightwear for women. According to him, it will have ranges from blended yarn, synthetic to cotton wear and pure silk.Patra said the company would also look at men's wear with new sub-brands, along with accessories like shoes, cosmetics, bags, jewellery and others. "Going forward, 40% of our revenue will come from sarees, 40% from ethnic wear and the remaining 10-20% will come from non-apparel business. It will also set up exclusive brand outlets (EBOs), which will be a mix of company-owned and franchise-driven brick-and-mortar presence, along with multi-brand outlets, modern retail and e-commerce," Patra said.