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Arvind Brands and Retail Ltd, a unit of textile maker Arvind Ltd, has entered into a joint venture (JV) with global jeans and innerwear brand, Calvin Klein Inc., to take over its India business.
Arvind bought 49 per cent in the Murjani Group’s stake in Calvin Klein’s India business for Rs 88 crore.
Calvin Klein’s business is valued at Rs 180 crore and the NYSE-listed PVH group, which owns the brand, owns 51 per cent in the JV. Calvin Klein in India does an estimated business of Rs 140 crore.The stake buy would help Arvind strengthen its position in the ‘bridge to luxury’ segment, where it already either part owns or hold licences for brands such as Tommy Hilfiger, Nautica, GANT and the rest.
“It is a huge opportunity for Arvind. We will become a really dominant player in the Rs 800 crore bridge to luxury market,” said J Suresh, mangaing director of Arvind Lifestyle Brands.
Calvin Klein is also strong in innerwear, which would help Arvind penetrate deeper into this category, he said.
The JV is looking at a Rs 500-crore business from the brand, from Rs 140 crore currently, Suresh said.
The JV is looking to add 50 stores in the next four years to take the store count to 90.
Arvind holds licences for Arrow and IZod owned by PVH and the JV with PVH for Tommy Hilfiger in India.
Over the years, Arvind has acquired rights for various international brands to beef up its brands portfolio.
It bought the rights for Debenhams, Next and Nautica from Planet Retail in 2012. It also launched women’s wear brand Elle in the country and forged partnerships with brands, Hanes and Ed Hardy.
