Apparel firm Arvind Brands and Retail on Monday said the company has bought 49% stake in Calvin Klein India for around Rs 90 crore.
According to the agreement with PVH Corp, the owner of the Calvin Klein trademarks worldwide, Arvind will distribute Calvin Klein jeans apparel and innerwear products in India. The company is targeting R500 crore turnover in three years from the brand as against the current R125 crore.
The Rs 1,800 crore Arvind Brands already has a partnership with PVH that licences PVHís Tommy Hilfiger, Arrow and Izod brands in India.
The company also owns 50% stake in Tommy Hilfiger's Indian unit. The deal is intended to maximise the market opportunities for these product categories in the country, the companies said in a joint statement.
"With this deal, Arvind will have 90% market share in the super premium segment, which is the fastest growing in the apparel industry. With three brands of PVH along with our other brands like Gant and Nautica, we have a well entrenched brands portfolio to dominate this segment," J Suresh, managing director and CEO, Arvind Lifestyle Brands, told FE.
Arvind Brands, which is part of the R3,800 crore Arvind, plans to open 15 stores in the next three years to expand the total number of stores to 90. According to Suresh, the company has 50% market share in terms of value in the organised innerwear market dominated by Bangalore-based Page Industries' Jockey brand. "We are well-positioned to execute and expand on the growth strategy for the Calvin Klein brand in India,Ē said Tom Murry, CEO of Calvin Klein.