New Delhi: Italian luxury major Canali has entered into a 51:49 joint venture with Genesis Luxury Fashion, which currently has distribution rights of Canali-branded products in India. The company also plans to invest Rs 7.65 crore in India. The joint venture company will now sell Canali branded products in India exclusively.
Canali had sought approval from the Foreign Investment Promotion Board (FIPB), which gave its clearance last week.
"India is a market with a remarkable potential still to be exploited. By teaming up with Genesis Luxury we are confident we will be in a better position to strengthen our leadership in Indian luxury menswear market," said Stefano Canali, general manager and third generation of the Canali family in business.
The Italian brand, which currently operates five exclusive stores in India through a marketing and distribution arrangement with Genesis Luxury, has had a successful business association with Genesis Luxury for over four years now and the joint venture was the next logical step, said Sanjay Kapoor, managing director, Genesis Luxury. The JV will now accelerate the brands growth in India by opening 10-15 stores over the next three-four years.
Canali is the first luxury brand to invest in India since 100% FDI in single brand retailing was allowed by the government earlier this year. Genesis, a franchise for several global luxury brands, has been operating five Canali stores in India-two in the National Capital Region, at the DLF Emporio Mall and at the Oberoi hotel in Gurgaon, and one each in Mumbai's Palladium mall, Hyderabad's Taj Krishna hotel and Bangalore's UB City mall.
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Showing posts with label Genesis. Show all posts
Showing posts with label Genesis. Show all posts
Tuesday, February 14, 2012
Wednesday, January 25, 2012
Canali buys 51% stake in Genesis JV
NEW DELHI: Italian luxury brand Canali has picked up 51% stake to form a joint venture with its Indian franchise, Genesis Luxury Fashion, two persons familiar with the matter said.
Though Canali had the option to set up a wholly-owned subsidiary, following the government's decision last month to allow 100% foreign direct investment in single-brand retail, it has opted to stick to the previous ceiling.
A higher shareholding would have required it to mandatorily source 30% of its products from Indian small and medium enterprises, the persons quoted earlier explained.
Small and medium enterprises are defined as companies that have a total investment in plant and machinery not exceeding $1 million.
A Genesis Luxury Fashion spokesperson declined to comment on the JV plan, which is awaiting the government's clearance.
Canali is the first luxury brand to invest in India since the government removed the cap for foreign companies. Genesis, a franchise for several global luxury brands, has been operating five Canali stores in India - two in the National Capital Region, at the DLF Emporio Mall and at the Oberoi hotel in Gurgaon, and one each in Mumbai's Palladium mall, Hyderabad's Taj Krishna hotel and Bangalore's UB City mall.
"Canali is bullish about India and it might also venture into some of the smaller cities if good retail infrastructure comes up there," an industry expert, who works with various global luxury brands, said on condition of anonymity.
Global brands are increasingly eyeing India where the luxury market is growing at 20% a year and is expected to expand to $14.7 billion by 2015, from $5.8 billion, according to a recent report by CII and AT Kearney.
India has three million affluent households, defined as those with more than $100,000 (about Rs 50 lakh) of investable surplus, a global affluence study by research firm TNS said. The number of high net worth individuals, who have assets of $1 million or more, will more than double to 403,000 by 2015, Swiss wealth manager Julius Baer recently forecast.
Though Canali had the option to set up a wholly-owned subsidiary, following the government's decision last month to allow 100% foreign direct investment in single-brand retail, it has opted to stick to the previous ceiling.
A higher shareholding would have required it to mandatorily source 30% of its products from Indian small and medium enterprises, the persons quoted earlier explained.
Small and medium enterprises are defined as companies that have a total investment in plant and machinery not exceeding $1 million.
A Genesis Luxury Fashion spokesperson declined to comment on the JV plan, which is awaiting the government's clearance.
Canali is the first luxury brand to invest in India since the government removed the cap for foreign companies. Genesis, a franchise for several global luxury brands, has been operating five Canali stores in India - two in the National Capital Region, at the DLF Emporio Mall and at the Oberoi hotel in Gurgaon, and one each in Mumbai's Palladium mall, Hyderabad's Taj Krishna hotel and Bangalore's UB City mall.
"Canali is bullish about India and it might also venture into some of the smaller cities if good retail infrastructure comes up there," an industry expert, who works with various global luxury brands, said on condition of anonymity.
Global brands are increasingly eyeing India where the luxury market is growing at 20% a year and is expected to expand to $14.7 billion by 2015, from $5.8 billion, according to a recent report by CII and AT Kearney.
India has three million affluent households, defined as those with more than $100,000 (about Rs 50 lakh) of investable surplus, a global affluence study by research firm TNS said. The number of high net worth individuals, who have assets of $1 million or more, will more than double to 403,000 by 2015, Swiss wealth manager Julius Baer recently forecast.
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