Arvind Lifestyle buys Debenhams, Nautica and Next in India
27 Sep 2012
Arvind Lifestyle Brands, a subsidiary of Ahmedabad-based denim major Arvind Ltd, has acquired the India operations of British fashion retailers Debenhams and Next and American lifestyle brand Nautica from Plant Retail, signalling its entry into the department store and apparel speciality retail segments.
The acquisition gives Arvind Lifestyle, one of the largest players in the apparel brands and retail space in India, an entry into the luxury department store segment.
Arvind plans to increase the number of Debenhams stores in India from 2 to 8 over the next three years.
The acquisition of Next's Indian operations gives Arvind an entry into the fast growing segment of apparel specialty retail. Arvind plans to increase the number of Next stores from 3 to 12 in the next three years.
"The acquisition signals our entry into the department store segment and also the globally fast growing apparel, speciality retail segment,'' said Sanjay Lalbhai, chairman and managing director, Arvind Ltd.
''American sportwear lifestyle brand Nautica makes us the dominant player in the sportswear segment. With this we have taken a big step towards strengthening our position in the Indian fashion industry. This acquisitions will accelerate our growth and contribute to our vision of achieving sales of Rs5,000 crore over the next five years," he added.
The company plans to invest Rs150 crore into these three brands and has targeted Rs500 crore revenue over the next five years against the current sales of Rs70 crore, J Suresh, managing director and CEO of Arvind Lifestyle Brands, said.
Arvind already has a strong presence in the high-potential sportswear segment and the licensing arrangement with Nautica will strengthen the market. The company plans to set up 30 additional Nautica stores, taking the number to 41 free standing Nautica stores and 71 shop-in-shops in the next three years.