LVMH to share ramp with Indian designers
Luxury major in talks with Rohit Bal, Ritu Beri, Ritu Kumar For equity stakes and buyouts.
By Niranjan Bharati & Bhanu Pande, TNN |
NEW DELHI: The fragmented fashion and designerwear sector in India may soon move into the big league. Global luxury powerhouse Moet Hennessy Louis Vuitton (LVMH) is considering entering the Indian designerwear industry by acquiring equity stakes in Indian companies. Sources close to the development said the company was in talks with the country’s top designers, including Rohit Bal, Ritu Beri and Ritu Kumar. The possibilities being discussed include buyouts.
When contacted, LVMH India group director Vispi Patel said: “There is a possibility of (the company) entering into the Indian designerwear industry.” He did not confirm whether the company had initiated talks with the designers.
Mr Patel, however, said the company was looking at investing in the Indian designerwear industry through a private equity fund. LVMH plans to launch a $500 million PE fund in India by March next year. The company would then invest in different segments, including ready-to-wear apparel, designerwear, watches, jewellery, home furnishing and leisure. LVMH had launched two similar PE funds in Europe for investments in areas of its core competence, with a focus on mid-cap companies that offered expertise.
Being asked about a possible buyout or joint venture, Rohit Bal’s spokesperson said: “We have no comments on the matter as of now.” Indian fashion is increasingly gaining currency the world over, especially in the Middle East. The popularity is not limited to the Indian diaspora, but to other nationalities across the globe as well. Now that LVMH has a presence in India, analysts believe that it wants to take Indian specialities in design and prints to the world.
When contacted, LVMH India group director Vispi Patel said: “There is a possibility of (the company) entering into the Indian designerwear industry.” He did not confirm whether the company had initiated talks with the designers.
Mr Patel, however, said the company was looking at investing in the Indian designerwear industry through a private equity fund. LVMH plans to launch a $500 million PE fund in India by March next year. The company would then invest in different segments, including ready-to-wear apparel, designerwear, watches, jewellery, home furnishing and leisure. LVMH had launched two similar PE funds in Europe for investments in areas of its core competence, with a focus on mid-cap companies that offered expertise.
Being asked about a possible buyout or joint venture, Rohit Bal’s spokesperson said: “We have no comments on the matter as of now.” Indian fashion is increasingly gaining currency the world over, especially in the Middle East. The popularity is not limited to the Indian diaspora, but to other nationalities across the globe as well. Now that LVMH has a presence in India, analysts believe that it wants to take Indian specialities in design and prints to the world.
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