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Nothing Small About Lilliput

He climbed the stairs of success, believing in the credo of ‘trust yourself and make your own mistakes’. This philosophy has worked well for first generation entrepreneur Sanjeev Narula, Managing Director of Lilliput Kidswear. In four years of working with an exporter, Narula learned everything he needed to know about garment manufacturing. Unhappy in the hierarchy, however, Narula quit and started his own export house in 1991. A conversation with the Young Turk...
By Shereen Bhan
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Shereen Bhan (SB): How was your experience of starting up?

Sanjeev Narula (SN): We started with a very small investment amount of Rs. 1.5 lakh. In the first year, our turnover was Rs. 7.65 lakh. As beggars cannot be choosers, we used to make all kinds garments in the beginning, including ladies wear, kidswear, menswear and nightwear. But I soon realized that most buyers wanted [products from] specialized factories. Moreover, I found that international buyers love the Indian cotton fabric. As kidswear is usually made with 90 percent cotton fabric, I thought we should start specializing in kidswear.

SB: You started with an export business. How did you get into organized retail with the launch of the first Lilliput retail outlet in Delhi in 2003?

SN: We were confident that we will be able to churn out fine products with international designs at very reasonable prices. The only challenge we faced was identifying the right properties and getting the right team inducted into our system. At that time, retailing was in a virgin state, so getting the right properties at the right price was not a problem. So we opened a few stores in Delhi, which tasted very good success. Soon, we started expanding our retail business, and today we have 225 stores across 150 cities in India. In 2006, at a time when we had approximately 50 stores, we realized that we really needed to expand aggressively. According to me, it is the business of multiplication, supply chain excellence and speed that create a brand in retail.

SB: What can we expect from Lilliput in the next few years?

SN: We are planning to launch a new brand, Lilliput World. The average size of a Lilliput store is about 1,200 square feet; here, we mostly retail apparels and a small range of footwear and accessories. The average size of a Lilliput World store will be about 7,000 square feet. Besides carrying the existing Lilliput range, it will include kids’ ethnic wear as well as toys, prams, strollers, car seats, furniture for kids, home furnishings, and even maternity wear. We are trying to offer everything for kids at the Lilliput World store.

SB: Lilliput is the only kidswear store in India to provide a complete wardrobe solution for kids ranging from newborns to 12-year-olds. What is your vision for the brand?

SN: As on date, Lilliput is the number one kidswear brand in India. We want to retain that position. The SME of the Year award we won recently at the Emerging India Awards 2009 has brought us a lot of responsibility for delivering superior performance in the coming years. Once our overseas learning is done, we will be expanding our overseas business. We are thinking of expanding into other Asian countries as well.

Shereen Bhan is the Executive Editor, CNBC-TV18.

SB: You started with an export business.
How did you get into organized retail with
the launch of the first Lilliput retail outlet in
Delhi in 2003?
SN: We were confident that we will be able
to churn out fine products
with international
designs at very reasonable
prices. The only challenge
we faced was identifying
the right properties and
getting the right team
inducted into our system.
At that time, retailing was
in a virgin state, so getting
the right properties at
the right price was not a
problem. So we opened a
few stores in Delhi, which
tasted very good success.
Soon, we started expanding
our retail business, and today we have 225
stores across 150 cities in India. In 2006, at
a time when we had approximately 50 stores,
we realized that we really needed to SB: You started with an export business.
How did you get into organized retail with
the launch of the first Lilliput retail outlet in
Delhi in 2003?
SN: We were confident that we will be able
to churn out fine products
with international
designs at very reasonable
prices. The only challenge
we faced was identifying
the right properties and
getting the right team
inducted into our system.
At that time, retailing was
in a virgin state, so getting
the right properties at
the right price was not a
problem. So we opened a
few stores in Delhi, which
tasted very good success.
Soon, we started expanding
our retail business, and today we have 225
stores across 150 cities in India. In 2006, at
a time when we had approximately 50 stores,
we realized that we really needed to expand

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