House of Pearl in pact with Lerros
HOPF, which has close to 100 overseas clients including J C Penney, Gap, Banana Republic, Carrefour and Tesco, has been a long-time supplier to Lerros.
By Sanjeev Choudhary, TNN |
NEW DELHI: Gurgaon-based garment maker House of Pearl Fashions (HOPF) has entered into an equity tie-up with European brand Lerros for its retail venture in India. HoPF will hold 51% equity in the SPV which will be set up for its retail foray. Lerros will hold 40% equity while the employees of HoPF will hold the rest.
HOPF, which has close to 100 overseas clients including J C Penney, Gap, Banana Republic, Carrefour and Tesco, has been a long-time supplier to Lerros. The initial plan is to open ten retail stores in the national capital region at an investment of Rs 50 crore. All ten stores would come up around the middle of next year. The company plans to have 300 stores across the country in the next three years. “But it would depend on how well the first ten stores work.
If we do well, we would go for massive expansion and also explore franchisee route,” HOPF chairman Deepak Seth told ET.
Lerros, which is sold through 2,000 points of purchase across Europe, offers full range of casual mens and women wear and competes in the same segment as another marqee European brand Esprit. “The success of Esprit in India prompted us to explore the opportunity to bring Lerros to India,” says Mr Seth. Nearly 80% of the products to be sold through Lerros stores in India would initially be imported. HoPF plans to reduce the import contribution as the scale of operation goes up. The company may also introduce in its retail stores DCC and Kool Hearts brands, which it acquired in the US sometime ago.
HoPF is present across the value chain in the apparel business from design and development to manufacturing, sourcing, marketing, logistics and warehousing. Besides Gurgaon and Chennai in India, the company also has manufacturing facilities in Indonesia and Bangladesh. Moreover, it has partnerships with over 150 factories across Asia for its sourcing business.
It also has warehousing capability to handle 2 million pieces of garment in UK and USA. The company reported a net profit of Rs 52.6 crore and net sales of Rs 923.9 crore last fiscal.
HOPF, which has close to 100 overseas clients including J C Penney, Gap, Banana Republic, Carrefour and Tesco, has been a long-time supplier to Lerros. The initial plan is to open ten retail stores in the national capital region at an investment of Rs 50 crore. All ten stores would come up around the middle of next year. The company plans to have 300 stores across the country in the next three years. “But it would depend on how well the first ten stores work.
If we do well, we would go for massive expansion and also explore franchisee route,” HOPF chairman Deepak Seth told ET.
Lerros, which is sold through 2,000 points of purchase across Europe, offers full range of casual mens and women wear and competes in the same segment as another marqee European brand Esprit. “The success of Esprit in India prompted us to explore the opportunity to bring Lerros to India,” says Mr Seth. Nearly 80% of the products to be sold through Lerros stores in India would initially be imported. HoPF plans to reduce the import contribution as the scale of operation goes up. The company may also introduce in its retail stores DCC and Kool Hearts brands, which it acquired in the US sometime ago.
HoPF is present across the value chain in the apparel business from design and development to manufacturing, sourcing, marketing, logistics and warehousing. Besides Gurgaon and Chennai in India, the company also has manufacturing facilities in Indonesia and Bangladesh. Moreover, it has partnerships with over 150 factories across Asia for its sourcing business.
It also has warehousing capability to handle 2 million pieces of garment in UK and USA. The company reported a net profit of Rs 52.6 crore and net sales of Rs 923.9 crore last fiscal.
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