Pioneering developer of international style retail and recreation in India, DLF Retail Brands is
up for another joint venture, this time with a casual wear brand from Italy. Italian high street fashion brand Alcott, which had entered India in 2008 with a franchise agreement with DLF Retail Brand are ready to enter into a joint venture partnership, whereby the Indian partner, will have 51 per cent stake. Indian law allows only 51 per cent FDI in single brand retail. DLF Retail Brands, a part of real estate giant DLF has several brands in its portfolio, including Mothercare, Sunglass Hut, Boggi Milano and DKNY.
Alcott founder, Salvatore Colella says they are happy with Alcott’s performance in India and wish to grow here. The joint venture would be a first for the Italian brand. The Alcott brand was incepted in Italy in 1990 and has a presence in over 12 countries. It focuses on casual high street fashion targeting the youth. The brand entered India with DLF Retail Brands in December 2008 and currently has 12 standalone stores and three shop-in-shops. Colella says, in Italy, all operations are company managed and in other countries they have franchise arrangements. Alcott’s global annual turnover is currently estimated at 200 million Euro, with Italy alone contributing 50 per cent.
In India, Alcott is looking at opening more big stores, which are larger than its existing ones, with the intention of having 20 stores by end of 2011 and thereon, 10 stores every year. Alcott expects to have a turnover of 50-60 million Euros in India in the next 5 to 6 years.