Grendene invests in new factory

After year of record results, the shoe manufacturer Grendene decided to take a new project drawer shoes factory and others of business diversification. The footwear will open a wholly owned subsidiary of plastic furniture, in partnership with the publicist Nizan Guanaes, the banker André Esteves and French designer Philippe Starck.
The new plant, at Sobral (EC), will require a total disbursement of $ 60 million and will be ready in August, with the capacity to produce 40 million pairs a year.
The project comprises the investment budget of the year-between Grendene r $ 120 million and $ 140 million. Was already provided for in 2010, but it was plastered in 2011 due to retraction of the footwear industry in the period. The higher investment made the 75% reduction for Grendene 65% profit share for the distribution of dividends in 2013.
At least to Grendene, the situation changed last year. The company managed to expand by almost 28% of your gross sales, to $ 2.35 billion. Melissa marks, owner of Ipanema and Rider, among others, Grendene gained market share and increased its operational profitability (Ebitda margin) in 6.4 percentage points, reflecting improvements in production processes and dilution of operating expenses.
The net gain reached r $ 429 million in the year, up 40.5 percent, the best performance of the company since its IPO in 2004, says Francis Schmitt, Chief Financial Officer and investor relations officer of the Hamlets.
The footwear made 185 million pairs in 2012 and came close to their maximum capacity-200 million pairs. "In a few months we are already struggling to deliver. We are preparing for the end-of-year peak, "says Schmitt.
Grendene has seven factories in Sobral, two in Crato (CE), two in Fortaleza (CE) and another in Teixeira de Freitas (BA), the latest built by the company in 2007. From there to here, the Rider has not made any major investment in capacity expansion and accumulated reserves. In December, had more than $ 700 million in cash. "We were not accumulating [box] to win in financial, but rather because the demand was weak and had idle capacity," he said.
In parallel to the expansion of capacity, the Rider will enter into a new product category. With 42.5% of the total capital and 50.1% of the voter, the Rider will control a company of furniture manufactured with plastic, the raw material for much of his shoes. The equity of ABCDEFGHI Nizan Guanaes, Santana, by André Esteves, and the designer Philippe Starck will be minority.
The deal has an initial investment of $ 52 million, of which r $ 22 million will leave the Hamlets. The management of the company, which can reach revenues of R $ 100 million in two years, will be shared between the footwear and Starck, who will sign the pieces. For now, manufacturing will be outsourced.
Schmitt did not details the commercial strategy of the company, but says that the furniture will be on the market later this year with "competitive price" and appeal among middle-class consumers.
Grendene negotiates, in advanced stage, the creation of new international shoe designer in partnership with Philippe Starck. To get revenge, the deal will have the potential to reach revenues of US $ 100 million in four or five years. It wouldn't be the first time that the Rider works with international designers. The company has partners with Jason Wu, Vivienne Westwood, Jean Paul Gaultier, Karl Lagerfeld and Starck.
The launch of the brand is aligned to the strategy of expanding exports of higher value-added products. In 2012, the turnover with exports rose 44.1 percent to $ 422 million. The value represents 22% of the gross sales of the company, the largest exporter of footwear in the country by volume of pairs.