Arvind Brands Ltd, the wholly owned subsidiary of Arvind Mills Ltd, will enter in to a joint venture with the US-based VF Corporation, to manufacture and market the US-based company's global brands in India.
VF Corp owns brands such as Lee, Wrangler, Vanity Fair, Nautica, JanSport and Kipling.
Arvind Brands also has an equal joint venture with the Murjanis to market in India the latters Tommy Hilfiger brand.
The US company will invest $33 million for a 60 per cent in the JV company, to be called VF Arvind Brands Pvt. Ltd. The existing business including intellectual assets and existing licenses from VF for Lee, Wrangler, Nautica, Jansport and Kipling brands, currently held by Arvind Fashions Ltd, will be transferred to VF Arvind Brands.
The new company will handle the design, sourcing and marketing of the existing licensed brands to start with and in the future may add some more of VF Corporation's brands. The retailing and the store infrastructure will continue to be held by Arvind. Darshan Mehta, president, Arvind Brands, will be CEO of the new company.
According to Jayesh Shah, chief financial officer and director said, "The transaction further strengthens the relationship Arvind shares with VP Corporation and is a pointer to the faith in the future of branded retailing in India. The new company with far greater input from VF will be a force to reckon with in the domestic branded apparel and accessories market."