Raymond in joint venture with Grotto to market 'Gas' brand in India
By Our Corporate Bureau | 10 Nov 2006
Mumbai: Raymond Ltd has entered into a 50:50 joint venture agreement with Grotto S.p.A of Italy (the owner of the international brand 'Gas') for sale in India of casual apparel and accessories bearing the trademark 'Gas', the Indian textile and apparels major said in a filing with the Bombay Stock Exchange (BSE).
The joint venture will leverage Grotto's expertise in design and managing a successful brand and Raymond's expertise in apparel brand building and its vast distribution network to launch the 'GAS' brand in India. The total investment in the joint venture is pegged at around Rs50 crore.
The joint venture will target consumers with high purchasing power. GAS will be retailed in India through flagship stores, exclusive franchisee stores, large format stores and multi-brand outlets.
Gas is a leading Italian premium apparel brand owned by Grotto and promoted by the Grotto family. The brand has strengthened its reputation by setting fashion trends across 56 countries and 3000 points of sale.
The joint venture is subject to the approval of the board of directors of the respective companies, certain conditions precedent, requisite regulatory and other approvals.
The market for jeanswear in India is estimated at 90 million pairs per annum of which 30 per cent has been captured by the branded segment.
Raymond had recently signed a memorandum of understanding with the National Institute of Fashion Technology (NIFT) to access its design inputs and enhance its tailoring services.
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