American fashion retailer PVH Group, which owns Tommy
Hilfiger brand, has purchased Murjani Group’s 50 per cent stake in Arvind Murjani Brands (AMB)for an undisclosed sum, a move that could bring many THG brands into India. Sources say the American company has paid around Rs 400 crores. Incidentally, Tommy Hilfiger has a sales worth around Rs 200 crores in India. Arvind, owned by Sanjay Lalbhai will continue to own the remaining 50 per cent stake. The deal includes the purchase of Murjani’s licence for the Tommy Hilfiger trademarks in India. AMB has been the apparel sub-licensee of Tommy Hilfiger since 2004 in India. The reconfigured joint venture will continue its existing businesses, as well as take on the management of other sub-licensees in India.
"India is an important market for Tommy Hilfiger and we are fully committed to the continued growth and development of our business here. The transaction allows us to integrate India into our global platform for design and sourcing, ensuring consistency of the brand, while providing dedicated regional expertise where needed," said Fred Gehring, CEO of Tommy Hilfiger Group. Tommy Hilfiger will continue its partnership with Arvind going ahead, Gehring said.
For the Murjani Group, which had given up the franchises of two luxury brands Jimmy Choo and Gucci, this will be the third such exit. Mohan Murjani partnered with Hilfiger in 1985 to launch the American designer’s brand and company in the US. In 2004, Murjani launched the Tommy Hilfiger brand in India and had perpetual rights in the country. Murjani later sublicensed the apparel, footwear and handbags businesses to AMB and separately sublicensed other product categories to other companies.
Tommy Hilfiger said the move was in line with similar steps the Group had taken in other markets to support its strategy of consolidating brand management and approaching markets in a more coordinated manner. Tommy Hilfiger products are distributed in India through a network of more than 80 standalone stores and shop-in-shops across 30 cities, including Delhi, Mumbai, Bangalore, Chandigarh and Hyderabad.