Euro A Zipper, one of the leading international zippers brands today entered into an agreement with Kolkata-based Bagaria Trading Ltd. With this agreement, the zipper company forays into the rapidly-growing Indian market with an intent to seize a sizeable chunk of the leather and leather apparel segment that accounts for 12% to 13% of world’s leather production.
As per the Memorandum of Understanding (MoU) signed between the two groups, Bagaria Trading Ltd will have the sole right of Euro A Zipper’s pan-India franchise and will be responsible for sourcing all Euro A Zipper’s OBO brand products from the company’s manufacturing facilities in China and Bangladesh and handle the entire marketing, sales and distribution in India.
Through this move, Euro A Zipper aims to generate a revenue of $15-20 million within the first 3 years of its entry into the country.
Speaking about the reason to choose Bagaria Trading Ltd as its favoured partner, Mr. Ronny Ng, Managing Director, Euro A Zipper said, “To be able to get a foothold in India, we needed a strong partner who already has a substantial presence and reach in India’s leather and apparel markets, and more importantly, understands the domestic nuances and requirements. Bagaria, with over 50 years of presence in the country, meets all the requirements and more.”
According to the two companies, the MoU is the beginning of a long-term partnership. As per the roadmap etched out by the two, Euro A Zipper wants to eventually set up distribution centres in India and Bagaria Trading Ltd will be in charge of the entire logistics. Euro A Zipper and Bagaria Trading Ltd also plans to set up an assembly plant in the next 2 years as part of its gradual expansion plan.
Mr. Indranil Roy, Brand Head, Euro A Zipper said, “If everything works out as planned and once we have established our presence properly in India, we may look to extend our partnership to penetrate the domestic markets of neighbouring countries like Bangladesh, Sri Lanka and Nepal.”
Both the companies believe that the partnership will create an immediate upside for West Bengal’s economy. Mr. Saurav Bagaria, Director, Bagaria Trading Ltd said, “This partnership will enable us to introduce international standards in the usage of zippers in the leather and apparel industries, which is currently not there. With the intent to meet the global standardisation norms, the market will have to reshape itself and allow for specific skill development and expertise. This, in turn, will create employment in the region.”
Echoing the sentiment, Mr Roy said, “One of the big reasons for choosing Kolkata is its large and intelligent talent pool. Because, unknown as it may be, zipper manufacturing and assembly require intricate skills that is quite difficult in nature and has a high demand across the globe.”