Italian fashion brand Alcott that had inked a franchise agreement with DLF Brands to enter India in 2008, is mulling to convert their partnership into a joint venture.
"We are happy with the brand's (Alcott) performance in India and wish to grow here. Currently, we are talking to DLF to set up a joint venture in the country," Alcott Founder Salvatore Colella said.
He said the plan is to convert their franchise agreement into a JV, wherein DLF will have the majority shareholding and Alcott will be the minority partner. Indian law allows only 51% FDI in single brand retail.
He said India would be the first country where Alcott is looking at a joint venture and plans to open more big stores, which are larger than its existing ones.
"In Italy, all operations are company managed and in rest of the countries we have franchise run operations. Given the potential for growth in the Indian market, we wish to have a joint venture here," Colella said.
Alcott brand was born in Italy in 1990 and has presence in over 12 countries. It focuses on casual fashion targetting youth.
The brand entered India with DLF Brands in December 2008 and currently has 12 standalone stores and three shop-in- shops here.
"We intend to open 10 stores every year here. By the end of this year, we will have 20 stores in India," Colella said.
The firm currently imports merchandise from Dubai. However, it plans to start local sourcing not only for the Indian market but also to export to other countries.
"By next year we have plans to start sourcing products locally from India not only for the stores here, but also for those located outside India, especially cotton products," he added.
Alcott's global annual turnover is currently estimated at 200 million Euro, with Italy alone contributing 50%.
"In the next 5-6 years, we expect to have a turnover of 50-60 million Euro in India," he said.
DLF Brands, a part of real estate giant DLF Ltd has several brands in its portfolio, including Mothercare, Sunglass Hut, Boggi Milano and DKNY.
