DLF to add Ferragamo to luxury brand portfolio

Betting big on the $3.5 billion market for luxury goods in India, Salvatore Ferragamo, a globally recognised luxury brand, has closed in on a joint venture deal with the country's largest realty company DLF.

"We will announce the details of the venture in the coming days," Leonardo Ferragamo, chief executive officer, Palazzo Feroni Finanziaria SpA, the holding company for the Ferragamo group, said today. Ferragamo's franchise partner, Sports Station India, had parted ways with the company last year to concentrate on premium brands such as Levi's and Dockers, which are its core strength.

Ferragamo was looking for a tie-up since then. This newspaper had earlier reported that DLF was seeking Ferragamo franchise for around $3 million.

Ferragamo has only one store in the country at the moment. The store, located in Mumbai, was opened in March 2006. The company is looking at opening 5 new stores over the next three years.

"We are looking at opening stores in Delhi, Bangalore and adding another in Mumbai as it has proved to be a rewarding market. Going by the response, we shall take it from there," Ferragamo added.

The Ferragamo store in Mumbai is located in the Grand Hyatt hotel. Another one is expected at the upcoming DLF Emporio mall in Gurgaon. The mall is touted as a one-stop shop for all kinds of luxury brands including Armani, Versace, Louis Vuitton, Dolce & Gabbana and Escada.

DLF signed a joint venture deal with the Italian design house Giorgio Armani Holding BV in February and enjoys a 51 per cent stake in the venture. It also has a majority 51 per cent stake in a joint venture with Dolce & Gabbana.

Ferragamo is a maker of hand-made leather shoes and a range of accessories including handbags, belts, ties, apparel, perfumes and sunglasses.