Brandhouse Retails (BHRL) today announced a joint venture with Italian fashion brand Oviesse to set up its stores in the country.
As per the agreement, Brandhouse will own 62.5 per cent in the joint venture, while Oviesse, part of ¤1.1 billion (nearly Rs 6,855 crore) Gruppo Coin, will hold the rest. With a total investment of Rs 500 crore in the venture over five years, both the entities are expected to invest Rs 161 crore equity in the JV apart from raising long-term debt and working capital requirements.
The JV has plans to open 190 stores in tier I and II cities in the country in the next five years. The stores will have an average size of 700 to 1,500 square feet. The first of the stores are expected to come up in Mumbai, Delhi and Bangalore simultaneously by October this year.