East India Company planning a comeback: report
09 Jul 2014
The once mighty East India Company (EIC), which is now confined to selling premium luxury brands in the UK, is reported to be heading back to India, not as a commercial trading company, but a retailer of fine goods this time around.
The company is expected to make a formal call on its India entry with its rich chocolates, exotic coffees, rare teas and even luxury apartments by 2016, reports quoting its CEO Sanjiv Mehta said on Tuesday.
Mumbai-born diamond dealer Sanjiv Mehta, who owns EIC, is hoping for the new government to rationalise duty structures for luxury goods to roll out fine goods outlets in the country.
Mehta who acquired East India Company from 33 different shareholders in 2005, has since invested £20 million to reposition the company as a modern day luxury brand.
In 2010, the Mahindra Group picked up a minority stake in the London-based EIC that sells luxury products like jewellery, coins, real estate, hospitality, etc.
''The world has now come out of recession and this is the time to execute our retail and real estate projects. The East India Company is a brand with huge recognition across the world. In India, there is enough demand for luxury goods and we want to be present in the luxury malls in places such as Delhi, Mumbai and Bangalore with 7-10 stores and also venture into the real estate sector by 2016-17,'' reports quoted Mehta as saying.
The firm intends to enter the luxury real estate sector under its own brand of apartments with the help of a global partner in the UK, the US and India.
''Although the Mahindra Group is also into real estate, we would be partnering with a global player to set up branded apartments in places like Boston, London, Singapore and even Mumbai and Delhi,'' said Mehta.
In India, the company expects to make a foray into retail stores and branded apartments almost simultaneously by 2016-17. ''The price of land in India is an issue, and so is the high duty structure at almost 130 per cent on the landed cost of luxury items like teas. We are hoping for a simplified duty structure, which would take care of some of these issues,'' he added. The firm is also exploring new retail channels like corporate and season gifting.
Apart from its 10 standalone stores across the world, EIC also has formats such as kiosks and shop-in-shops in high-street destinations such as Mayfair Garden and within the Harrods store in the UK.
