Burberry, the 153 year old UK-based luxury brand, best-known for its signature trench coats,
has announced setting up a joint venture with Indian fashion retailer, Genesis Colors to expand its presence in India. The luxury apparel major plans to invest around Rs 16.5 crore for a 51 per cent stake in the venture. They are awaiting FIPB clearance for the venture. Genesis Colors already has distribution rights in India for a number of luxury brands including Jimmy Choo, Canali, Aigner, Paul Smith, Just Cavalli and Bottega Veneta it also owns designer labels such as Satya Paul, Deepika Gehani, Shobhaa De and Bwitch. It may be noted that Genesis Colour had recently raised Rs 80 crore from Henderson Equity Partners. The JV with Burberry is expected to lead a major presence in India with a net turnover of around Rs 250 crore by 2018-19.
The product range will include formals and casuals for both, men and women, sportswear, swimwear, lingerie, children?s wear, raincoats, hosieries and accessories such as bags, jewellery, sunglasses, watches and cosmetics. At present there are only two Burberry stores in India under a franchise agreement with Media Star Private Ltd. But this partnership is expected to dissolve once the new joint venture comes up. Burberry hopes to expand rapidly in India repeating the recent success in China, where it operates 44 stores and is enjoying double-digit revenue growth.