Tommy Hilfiger acquires 50% stake in Arvind Murjani Brands
The Tommy Hilfiger Group, which is wholly owned by PVH Corp., announced that it has completed a transaction with the Murjani Group resulting in its acquisition of a direct interest in the Tommy Hilfiger business in India.
The transaction includes the buyout of the Murjani Group's license for the Tommy Hilfiger trademarks in India and the acquisition of its 50% interest in Arvind Murjani Brands Pvte. Ltd. (AMB). AMB has been the apparel sublicensee of the Tommy Hilfiger brand since its introduction in the Indian market. Arvind Limited is the other partner in AMB. The reconfigured joint venture will continue its existing businesses going forward, as well as take on the management of the other sublicensees in India. This move establishes the Tommy Hilfiger Group's direct interest in India and builds upon a pre-existing partnership with Arvind Limited, a seasoned leader in the Indian apparel business. Terms of the transaction were not discloed.
The move is in line with similar actions the Tommy Hilfiger Group has taken in other international markets in support of its strategy of consolidating brand management and approaching markets in a more coordinated manner. Fred Gehring, Chief Executive Officer of Tommy Hilfiger Group, said, "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."
Mr. Mohan Murjani, Chairman of the Murjani Group, partnered with Mr. Tommy Hilfiger in 1985 to launch the American designer's brand and company in the United States. In 2004, the Murjani Group successfully launched the Tommy Hilfiger brand in India, as one of the first international designer lifestyle brands to enter the Indian market. Through the Murjani Group's license for the Tommy Hilfiger brand in India, Mr. Murjani sublicensed apparel, footwear and handbags to AMB and, separately, sublicensed other product categories to experienced Indian companies.
Mr. Gehring stated, "We are pleased to be continuing the Tommy Hilfiger brand's partnership with Arvind Limited with this exciting new venture. We believe that continuing the relationship will allow us to benefit from their expertise in the Indian apparel and manufacturing business, both with the Tommy Hilfiger brand, as well as other brands, including our sibling brands, IZOD and ARROW."
Shailesh Chaturvedi, Chief Executive Officer of the joint venture stated, "I look forward to continuing to lead the effort to grow and develop the Tommy Hilfiger business in India, an effort in which I have been involved for the past five years. Tommy Hilfiger is already a market leader in the highly competitive premium imported designer apparel sector. There is a tremendous level of consumer interest in India for the Tommy Hilfiger brand and even with the extensive network of stores currently in existence, I believe that there are still significant opportunities for further growth and expansion, The entire management team will work closely with the Tommy Hilfiger Group and continue to build the business in India - one of the world's most dynamic and growing retail markets."