Archies, India’s No. 1 greetings card and gift company, is exploring the possibility of an alliance with a foreign entity.
The company has a 60 per cent market share in the social expression industry, which includes greetings cards, gifts and accessories.
“We are open to such strategic alliances with international players. We could either bring in equity partners or go for brand tie-ups. There could also be a round of private placement to fund our growth plans,” said Anil Moolchandani, chairman and managing director of Archies.
Archies plans an additional 180 stores by 2010, which will require an investment of around Rs 30 lakh per store.
At present, Archies has 105 exclusive outlets. It has also signed up with more than 250 malls and over 350 franchisees across the country.
The focus of the franchisee outlets will be Tier II and Tier III towns.
Archies move to tie up with a global player comes at a time when foreign entertainment majors such as Disney and Warner Brothers are picking up stakes or forming alliances with Indian companies.
Disney, which has one of the largest range of greetings products and merchandise, recently increased its stake in India’s UTV to 32.1 per cent from 14.9 per cent by investing Rs 805 crore.
Archies has tie-ups with leading international brands such as Carlton Cards, Expressions Gifts Co and Russ Berrie to source gifts.
It also has tie-ups and licensing arrangements for popular merchandising characters.
There are arrangements with Paramount Cards Inc, Anne Geddes and American Greetings for card design and the use of the brand name.
Archies has recently tied up with major UK brand Paper Island to market and distribute their Fizzy Moon products.
The company is also present in Sri Lanka, Nepal, Bangladesh and West Asia through franchisee tie-ups.
“We also sell in the African countries and are test-marketing various products for a bigger presence,” said Moolchandani.
Source: The Telegraph