Spread across two cities with one outlet each in Hyderabad and Bangalore, PJL Clothing is investing over Rs 13 crore in setting up 14 more Pepe Jeans retail outlets in phase one this year. It will invest an additional Rs 20 crore for setting up six more retail outlets in the second phase next year.

As part of the phase one expansion, Mumbai and Delhi will each house three Pepe Jeans retail outlets. Bangalore and Chennai will have two Pepe Jeans retail outlets each, and one outlet will be set up in Hyderabad, Kolkatta and Jaipur, respectively.

Under the second phase, the company will be setting up one retail outlet each in Ahmedabad, Baroda, Indore and Bhopal. Two outlets will come up in Cochin.

Says PJL Clothing (India) Ltd managing director Mr Chetan Shah: "The products would be targeted at the medium-to premium-end of the market, hence, the need to set up retail outlets across major cities catering to the far-reaching mass population. Till now, the products were targeted at the premium-end of the market."Pepe Jeans are available to customers in the range of Rs 995 to Rs 1,295.

According Mr Shah: "The Indian subsidiary would be sourcing funds from internal accruals, but if required would approach the parent company and Indian banks for additional funds."

At present, PJL Clothing (India) Ltd has 350 retailers inclusive of distributors in Mumbai. Says Mr Shah: "The company plans to completely do away with distributors in Mumbai next year and intends setting up 16 distributors across major cities which would cater to the mass population."

According to Mr Shah: "As part of the strategy, 16 distributors will operate only in remote areas where there is no access to Pepe Jeans stores and will enlighten the customers about the newly launched products." PJL Clothing (India) Ltd is engaged in the manufacturing and marketing of the basic range which is available to customers throughout the year and the fashionable range which is introduced by the company twice a year. The fashionable range comprises `Spring Summer 2001 Collection' and `Autumn Winter 2001 Collection'.

Says Mr Shah: "For the fashion conscious youth, Pepe Jeans will unveil the `Seventythree' collection very soon, adding "Seventythree Collection is a tribute to the year 1973, that saw the launch of a trendy brand Pepe Jeans on the London Street. The collection is Pepe Jeans London's `Celebration of Denim'."

Adds Mr Shah: "The range is constructed in a special dual tone denim fabric, that is sandblasted and then enzyme washed to create a unique second-hand finish, resembling the original Seventythree look. This reproduction `Scrub Denim technology' gives it a soft feel with a texture that is used to replicate the natural creases of time." The Seventythree Collection is priced in the range between Rs 900 and Rs 1,200 for jeans whereas the tops are available in the range between Rs 450 and Rs 650.

Adds Mr Shah: "The collection includes accessories such as bags priced at Rs 495 and caps priced at Rs 225, whereas red metal buttons, red inner label branding and all paper accessories in handcrafted paper with red lettering lends a distinct look to the collection."

"Besides, the company plans to launch an advertising campaign for Seventythree Collection in March this year and is investing Rs 3.5 crore on advertising," says Mr Shah.

The Seventythree Collection will be available at Pepe Stores and departmental stores such as KBN, Shoppers Stop, Pantaloon, Vama, Piramyd and Casuals Boutique in Mumbai.

Of the total size of the Rs 1,500-crore readymade jeans market, PJL Clothing (India) Ltd has a marketshare of 30 per cent. The company expects the readymade jeans market to grow by 25 per cent every year.

Adds Mr Shah: "The overall sales of Pepe Jeans has grown by 50 per cent compared to last year's sales. In the coming years, the company expects sales to increase by an additional 25 per cent." As regards competition, PJL Clothing (India) Ltd competes with Levis, whose marketshare stands at 25 per cent, and Lee, which has a share of 30 per cent. The company expects to generate 70 per cent of sales through marketing of the fashionable range across major cities, according to Mr Shah.