success story

zodiac: celebration of abc   

unmatched quality
by R S Roy

The House of Zodiac, a Rs. 1.75 billion

transnational menswear company, enters 50 years
of its successful operations this August. Zodiac
prides itself on not only being a prime offer for the
Indian men but also as one of the few Indian brands
that could make its presence felt in Europe
competing with some of the best known     abc
international brands at par.

Zodiac: The Beginning…

The Zodiac story began way back in 1954 when M.Y. Noorani started a trading company. One of
the first orders that he received was for fabric for an Indian company. When the fabric arrived in
India, the buyer cancelled the order and Noorani was faced with a choice whether to abandon the
consignment, thereby losing the entire amount paid for the fabric, or to pay import duty and take
delivery of the consignment. He chose to pay the import duty and take delivery of the
consignment himself, which he converted into Neckties. Thus began, Zodiac's legendary Tie
business. The Ties became so successful, that soon there was a need to brand the Ties. Noorani
in consultation with a few friends and colleagues selected the name Zodiac. The rest is history.

Noorani did well in exports as well and soon established business in Europe for premium quality
ties and shirts. At home the Zodiac name became a synonym for ties and soon the company
entered the arena of men's accessories with Cuff links, Belts, Wallets and Handkerchiefs.

Zodiac entered the domestic shirt segment in the late '60s and it was only recently that it added a
premium range of trousers to its array of products. In 2002 Zodiac successfully launched a
trendy, casual wear brand ZOD! creating a special “Club Wear” segment for the Indian male.

A Complete Menswear Company

Today, Zodiac's combined manufacturing capacity is 5 million shirts, half a million ties and 1
million pairs of socks. It has manufacturing facilities in India (Karnataka, Gujarat) and the UAE
(Dubai), with design and sales offices in 3 of the 5 fashion capitals of the world -- New York,
London and Dusseldorf.

Zodiac's recent acquisition of one of the biggest suit and trouser manufacturing facilities (from
Niryat-Sam Apparels, Noida) will enable it to be present in all segments of the menswear market
and also make a formal entry into the fine tailoring category. The plant that will be relocated to
Bangalore, once fully operational, will manufacture 400 jackets and 1,100 trousers a day. The
opening is slated to coincide with the festival season 2003 and this expansion is slated to add
approx 400 million at W.S.P. to the top line of Zodiac.

With 12 Branches in India and about 3500 people employed, the House of Zodiac is one of the
few apparel majors that controls entire operations from Design to the Shelf a seamless
organization between in-house Design, Development, Manufacturing, Distribution, Marketing &
Retail. Zodiac is the first woven garments company in the world to get the SAA 8000, only the
second company in India across categories to get this in India, ITC Tobacco Division being the
first one.

Zodiac's retail network includes over 700 outlets and 80 exclusive showrooms spread across the
country. The recent tie-up between Zodiac and Ciro Citterio, a UK-based company has helped
Zodiac sell its formal shirts under its flagship brand, in 130 stores across the United Kingdom.
Zodiac had earlier entered into similar arrangements very successfully with The Bijenkorf in
Holland as well as select retailers in Germany. In the Middle East, Zodiac is present at the
Landmark Group owned Splash stores.

Zodiac: The Fountainhead of Design Capabilities…

Zodiac's in-house design capabilities have helped Zodiac unveil some of the hottest trends in
male couture in India, well ahead of its competitors. With its design houses in India and abroad,
which collectively develop the range, styled in the latest global trends, Zodiac has been on the
forefront in formal fashion. Each of its design houses are headed and managed by international
design teams handpicked for their acumen and keen eye for present day designs and trends.
Very soon, its new, swanky, full service, 5,000 sq. ft. design studio in downtown Mumbai will be
the hot bed of creativity. This vast experience and expertise of working with the largest retailers
across 3 continents internationally, affords Zodiac the ability to foresee coming trends. Zodiac is
heavily IT driven with the latest in s/w technology. CAD/CAM is used in Pattern Making and
Fabric Planning besides other areas. www.zodiaconline.com provides a direct link between the
customer and the sales and marketing team of Zodiac. The studios in London, New York and
Dusseldorf communicate with each other and with India via a sophisticated extranet.
 a
b
c
Zodiac: The Commitment to
Quality
M. Y. Noorani's passion for
quality has been the sole reason
for Zodiac's success since its
inception. Driven by the same
passion Anees, Noorani's elder
son expanded the horizon of
Zodiac. With young Salman
Noorani, Managing Director and
President, now at the helm of
affairs, Zodiac is all charged up
to expand its frontiers further and
make Zodiac a complete
menswear brand.
“Zodiac is built on the hallmarks
of highest quality and a policy of
non discounting. Quality is
etched into the very fibre of the
organisation, one of the reasons
why Zodiac stays competitive,
globally”, says Salman.
“Delivering the best on every
aspect of the shirt, be it the
fabric, stitching, buttons or lining,
Zodiac sells at par with top
brands like Hugo Boss, Armani,
Thomas Pink etc. in the premium
segment internationally”, he
adds.
Zodiac campaign
Who would forget the Zodiac
bearded man? The taste of
success with Ties inspired M.Y.
Noorani to go for an advertising
campaign for Zodiac. With Bal
Mundkur of Ulka Advertising,
Noorani conceptualized the
Zodiac Man who was to  
represent the stylish endearing
60's.
“Looking at the example set by
Hathaway shirts in the U.S., who
successfully used an
unconventional model with an
eye patch, we identified Dhanji
Rana as the Zodiac man. He
was bearded, well built and
epitomized a macho image; It
was very unconventional to use
a bearded model in those days.
The strategy and creative
   
SALMAN NOORANI
Managing Director, Zodiac
Clothing Company Limited
Salman Noorani, 40, Managing
Director, ZODIAC, is a man driven
by one obsession to make the finest
quality shirts in the world for India
and the sophisticated global
markets.
When he joined the mainstream
business in 1982, Salman inherited
a legacy from his father and elder
brother - the Zodiac Brand together
with a shirt exports business. Like
most family-run enterprises, Salman
was initiated into all aspects of the
business - from managing the
factory and workers, to pushing the
sales team for orders and managing
the Company's finances.
To quote M.Y. Noorani, Chairman,
“At that time, the need of the hour
was to build on the shirts export
business and provide the fast
emerging Indian ready-made
segment with shirts, shirts and more
shirts.” This opened up new vistas
of growth for the Company that has
state-of-the-art manufacturing plants
for shirts in India in Bangalore,
Gujarat and overseas in Dubai.
The Company prides itself on being
the only design-driven clothier in the
country. “I eat, sleep, breathe and
dream shirts”, smiles SYN, as he is
known to his colleagues. Salman's
endeavour to produce the finest
quality shirts has driven him to build
a core team of skilled professionals
across the board in Design,
Development, Manufacturing,
Merchandising and Marketing.
His winning formula - hire and retain  
the best design talent, invest in R&D
and innovate constantly - has
positioned Zodiac among the top 3
premium formal menswear labels
and the only Indian shirt brand that
sells its shirts under its flagship
brand in over 150 select outlets in
key European markets.
Salman has been instrumental in
setting up Zodiac's international
marketing operations in 3 of the 5
fashion capitals of the world -- in
Dusseldorf, London and New York.
These operations offer access to the
latest international design and style
trends. This winning combination of
contemporary designs and superior
quality, have given Zodiac an edge
concept was a runaway success and the Zodiac man - Dhanji Rana became an icon equal to the
Air India Maharaja. Widely recognized, that face launched not only Zodiac ties & accessories, but
also the shirts”, narrates senior Noorani with distinct pride on his face.

There was nothing in that black & white advertisement campaign except the Zodiac man, still
people remember it. “That's the brand power of Zodiac”, says Salman.

The nineties saw Zodiac going aggressive on its advertising with a changed look but quality
remained the core of the brand image and that's what has always been communicated through its
campaigns, reaffirms Salman. Taking prime positions and covers in prominent print media,
Zodiac advertising revolved around its product features.

a
b     The Launch of a new brand
c
Zodiac, with tremendous equity in the
 Researches place Zodiac market, when looked at the new
on Top segments for expansion, realized that
where there was not much happening
Over the years, syndicated in terms of product differentiation.
research has consistently There were plethora of brands in
shown that Zodiac Shirts men's wear, some very strong in
have the highest brand formals and others in the casual wear
loyalty among brands in segment but the need was to 'have a
India. raison de etre'. A need to be different,
look different in order to get noticed
KSA Technopak 2002 and hence the challenge was to
research reports Zodiac has CREATE A BRAND WITH A
  the “highest brand loyalty”   DIFFERENCE.
amongst users of premium
men's wear. The Gap : Having done its homework
well, Zodiac realized that the young
A study in IMAGES Apr' 03 man of India wanted to look
issue shows Zodiac whites fashionable. While he did have some
amongst the top 3 brands for choice for his formals and casuals but
top level executives. he was never too sure of what he
should wear for parties and for club
ORG MARG 2003 Research rendezvous. And that was the slot
puts Louis Philippe and where ZOD! fitted in just right - A new
Zodiac at similar awareness segment within the premium casual
levels nationwide. clothing market called Club Wear.
a
Consumer Profile :“Post Research
    b
we created an image of our buyer for
c
the design team: Male, 20-35 years
from SEC A & A1+ and could be living in any of the top 12 cities of India. He can be identified as
any one of the 3 lead characters portrayed in the popular Hindi film “Dil Chahta Hai”,” says
Imraan Surve, Marketing Head ZOD!

Launch : A range of trendy and fashionable men's shirts for the male who wants to be in vogue
ZOD! “The Club Wear Collection” was launched early last year. The ZOD! advertisement reeked
of attitude with a show stopping visual. The agency created a base line that had suggestiveness
and appeal in line with the psyche of the target audience Attitude driven rather than functional
“ZOD! Are you game?”

Pricing : Targeted at the premium end of the market, the entry level for ZOD! shirts was: Rs 795
Rs 995. The range with imported fabrics carried tags of Rs 1000 Rs 1195 and the premium range
was priced at Rs 1200/- plus.

Marketing Strategy :A multi media approach included a heady mix of Dailies, Magazines,
Events, Internet, Outdoor, on-ground promos. Innovation was the key to all its marketing
activities.

Retail Presence : ZOD! has over 200 counters nationwide Shoppers Stop, Lifestyle, Mohanlals,
Big Jos to name a few. Says B. S. Nagesh, CEO Shoppers' Stop, “The products in the ZOD!
range are quite unique. Customers have accepted these fabrics very well. The last three
collections from ZOD! have been very promising…”. No wonder ZOD! achieved 7 stock turns at
Shoppers Stop and Lifestyle chain of stores in the past one year.

Indeed, ZOD!, the Club Wear brand, follows in the footsteps of the glorious tradition of Zodiac
which reflects on its constant endeavor to deliver fashion as it happens internationally.

Zodiac Trousers

It took Zodiac a long long time to look at bottoms. Having perfected the art of shirtmaking, Zodiac
introduced its trousers collection only recently. An unusual rendition of Polyester and Cottons
enveloping Chinos and Corduroys, the range is available in Blends, Micro Cords, Chinos, Twills
and Pure Wools and are priced between Rs. 995 to Rs. 1,595. The corduroy and linen trousers
are priced at Rs. 1,595.

“Zodiac, always at the helm of providing the contemporary Indian male the latest in International
menswear, is associated with comfortable classics, suitably crafted for business wear”, says
Salman. “These easy-care, non-crease trousers of 2-ply light premium cottons and new age
woollen blended fabrics make working days a breeze. The sharper and sleeker cuts enhance the
formal image and are tailored to perfection for a great look and finish”, he adds emphasizing the
quality of Zodiac trousers.

Awards & Recognitions

Zodiac has been the recipient of many industry awards. At the first Images Fashion Awards (IFA
2000) Zodiac was adjudged “The Most Admired Neckwear Brand of the Year”. Most recently its
new offspring ZOD! was conferred two of the CMAI-APEX Awards (2003) - The Brand Launch of
the Year and the Best Emerging Brand of the Year. Yet again ZOD! Clubwear - the only apparel
brand short-listed for the EMVIES - walked away with the Silver trophy for the Best Media
Strategy. Competing with FMCG brands that have enormous ad spends, ZOD! stood its ground
because of a strategy that showed innovative and effective method to launch a brand, create a
whole new segment and most importantly deliver on business targets with a limited budget.

 THE KEY STRENGTHS OF THE BOARD OF DIRECTORS, ZODIAC

M Y Noorani, founder of the House of Zodiac. Recipient of Lifetime achievement
awards from CMAI and CIAE;

Dr. S. Abid Hussain, Member of the Planning Commission of India and former
Ambassador to the US. Rich experience of strategy management;

M.L. Apte, former Sheriff of Mumbai . Textile expert

Gurcharan Das, Former Chairman of P&G India and Chairman, Advisory Board,
Citibank India. Brings marketing excellence
S.M. Datta, Former Chairman, HLL India, Marketing and corporate strategy

Bernard Stienrucke, Former CEO, Deutsche Bank AG International Banking

experience;

Deepak Parekh, Chairman, HDFC, Glaxo India and Burroughs Wellcome, Banking
and financial experience;

Y.P Trivedi, President of IMC. Taxation expert;

A.Y. Noorani, Vice Chairman and Managing Director;

S.Y. Noorani, Managing Director and President,

Manages the design, production, fabric, marketing and retail functions.