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Wednesday, 15 June 2011 |
Reliance Brands is looking to ink a joint venture with Brooks
Brothers, an American high street casual wear brand. Reliance could look at a 51 per cent stake in the single brand venture. At the moment Reliance already has joint ventures with brands like Diesel (denim and casual wear), Timberland (footwear), Paul & Shark (lifestyle sportswear), Ermenegildo Zegna (luxury men's wear), Quicksilver & Roxy (outdoor sports lifestyle) and Steve Madden (footwear and accessories). The format for the new joint venture may be similar to Reliance Brands’ agreement with Diesel. Under this agreement, Reliance Brands and Diesel are supposed to form a separate entity that will invest in properties to create exclusive brand outlets, in re-turn for sharing profits as per the joint venture ratio.
A subsidiary of the Mukesh Ambani-led Reliance Retail, Reliance Brands is spearheaded by industry veteran Darshan Mehta. It retails various high-end footwear and apparel brands in the country. Brooks Brothers on the other hand has been dressing up men for nearly two centuries and is one of America's oldest retailers, specializing in men's suits and outerwear. The company also sells women's and children's apparel. Brooks Brothers operates about 180 upscale retail stores and outlet across the US. Through partnerships, Brooks Brothers has 100-plus stores in about 15 countries including Chile, China, Italy, and Japan.
Reliance Brands is interested in tying up with international brands to create a strong procurement side. The Rs 3,500-crores domestic fashion luxury market is growing at a compounded annual growth rate of about 25 per cent. Possibly this is drawing players like Reliance Brands to increase their focus on the segment. |
