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Arvind Mills to build VF brands business in India
01 Sep '06
3 min read
VF Corporation, a global leader in branded lifestyle apparel, announced that it has agreed to establish a joint venture with Arvind Mills Ltd to design, market and distribute VF branded products in India.
The joint venture, VF Arvind Brands Private Ltd, will initially encompass VF's Lee, Wrangler, Nautica, JanSport and Kipling brands, which were previously marketed under licensing and distribution agreements with Arvind Fashions, a subsidiary of Arvind Mills Ltd, and will serve as the vehicle for launching additional brands in India in the future.
VF will own 60 percent of the joint venture, and Arvind Mills Ltd will own 40 percent.
"The strength of Arvind's distribution gives us a clear entry into one of the world's most dynamic and fastest growing markets," said Mackey J. McDonald, Chairman and Chief Executive Officer of VF Corporation.
"With its rapidly expanding economy, growing retail base and favorable demographic characteristics, India presents a source of enormous future growth for our brands."
"This move underscores our commitment to leveraging VF's powerful portfolio of brands to capture new growth opportunities in expanding markets."
"Arvind Mills and the management team that built our Lee and Wrangler brand business in India over the last decade have been great partners. Extending our partnership with this joint venture is a logical evolution of our strong relationship," McDonald added.
VF's wholesale business in India with its Lee, Wrangler, Nautica, JanSport and Kipling brands is approximately $40 million annually and is expected to grow more than 25 percent per year, excluding the addition of other VF brands.
The joint venture, VF Arvind Brands Private Ltd, will initially encompass VF's Lee, Wrangler, Nautica, JanSport and Kipling brands, which were previously marketed under licensing and distribution agreements with Arvind Fashions, a subsidiary of Arvind Mills Ltd, and will serve as the vehicle for launching additional brands in India in the future.
VF will own 60 percent of the joint venture, and Arvind Mills Ltd will own 40 percent.
"The strength of Arvind's distribution gives us a clear entry into one of the world's most dynamic and fastest growing markets," said Mackey J. McDonald, Chairman and Chief Executive Officer of VF Corporation.
"With its rapidly expanding economy, growing retail base and favorable demographic characteristics, India presents a source of enormous future growth for our brands."
"This move underscores our commitment to leveraging VF's powerful portfolio of brands to capture new growth opportunities in expanding markets."
"Arvind Mills and the management team that built our Lee and Wrangler brand business in India over the last decade have been great partners. Extending our partnership with this joint venture is a logical evolution of our strong relationship," McDonald added.
VF's wholesale business in India with its Lee, Wrangler, Nautica, JanSport and Kipling brands is approximately $40 million annually and is expected to grow more than 25 percent per year, excluding the addition of other VF brands.
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