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Lilliput Case Study

Fact File:
1. Sanjeev Narula a first generation entrepreneur did his graduation from Delhi University and joined a small export house as a fabricator and worked there for 4-5 years. 2. He then there realized that very few or no exporters gave any thought to kids wear and the one who did, did it in a half-hearted way. 3. With retail chains slowly started to come in India, bringing opportunities, Narula decided to go with the tide and concentrated on the manufacturing and export of the kids wear which were designed and tailored according to the international fashion demand, started Lilliput brand in 1991 at the age of 26 with a seed capital of ` 1.5 lakhs from savings and borrowings with 25 sewing machines. 4. Sanjeev Narula honestly acted both as a person and a promoter of Lilliput by creating a new concept in the branded kids wear segment in the country. In the first year itself he notched up export worth ` 40 lakhs which was a large sum of amount in 1991. 5. Lilliput fabrics are largely made of cotton, extensive use of machinery from countries like Japan, China & Taiwan along with rigorous testing process for fabrics used for kids wear confirming international standards & baby safety which was the reason behind the success, soon Narula started procuring orders from some well-known retailors in U.S.A & Europe like Gap, Next etc. worth several crore of Rupees. 6. By 2000 Narula s gross exports had crossed ` 50 crores. 7. Narula got a severe jolt after 9/11 terror attack in U.S. when his consignment of ` 52 crore was cancelled.

Lilliput has also opened stores in several neighboring countries & Middle East. outerwear. innerwear. 13. accessories & ethnic wears of infants. 62 stores in South Western Region & 14 stores each in Mumbai & Bangalore. toddlers as well as boys & girls under 12. opened 250 large brand outlets with Pantaloon. That was the time Narula started to pay attention to the domestic market & the company entered in the domestic market with its first store in Delhi s Greater Kailash in 2003. Lilliput attained a growth of 40 % year over year with a turnover growth of 300% during the past three years with turnover of ` 328 crore.8. Lilliput expect sales of ` 415 crore in 2009-2010 with `1000 crore in 2012-2013. Lilliput now wants to expand in Tier II & Tier III Market in India followed by overseas. Narula wants to open stores in Europe competing with his overseas customers. 14. swimwear. 11. Since then it expanded its presence through 225 exclusive brand outlets. 9. It has also 10 stores in Shanghai & Haifei in China. Now with 35 distributors and 250 shops in stop stores & 1000 points of Sale Lilliput offers a wide variety of products of kids including footwear. Reliance Trendz etc. 15. 12. . With Kids Wear market estimated ` 17000 crore of which ` 4000 crore is constituted by branded kidswear growing at 20% per year. Shopper s Stop. 10. Lilliput kids wear Limited (LKL) has 46 stores in Delhi-NCR. Indivision invested ` 120 crore in 3 tranches in the company for 35 % stake. Further he also wants to capture Tier II & Tier III market in China.

ft. No matter how big they grow including children. ft.16. feet to 70. with a new concept of retail chain Lilliput World by investing ` 150 crore in the next 2 years. Narula hopes the business will grow bigger with the idea of starting to produce Lilliput Teen Brand even after they have grown up and continue to identify them with this brand. Narula is ambitious and would like to grow faster than today as he plans to expand store areas from 1200 sq.000 sq. ft.000 sq. in Tier II & Tier III cities in India. in big cities & minimum of 7000 sq. He is also planning to increase the output area of stores to 20. 17. . With the market growing big.