Reliance Brands, American men’s clothier chain Brooks Brothers ink pact

MUMBAI: Reliance Brands, a unit of energy major Reliance Industries, is bringing the oldest American men’s clothier chain Brooks Brothers to India as it looks to create a strong portfolio of foreign labels in the fashion space. Brooks Brothers is privately owned by Italian billionaire Claudio Del Vecchio, son of the founder of Luxottica, the world’s largest eyewear company whose brands include Ray-Ban and Oakley. It will hold a 51% stake in the new entity with the rest being held by Reliance Brands.

This partnership, which was in the works for nearly 15 months, will be Reliance’s fifth joint venture after Iconix, Paul & Shark, Diesel and Ermenegildo Zegna. It was in February that Reliance invested in a joint venture with Iconix, grabbing the ownership rights of 20 international lifestyle brands.

Brooks’ India venture comes after eight years of presence in China. Both China and India’s lifestyle market are growing on the back of consumer awareness, aspirations and higher disposable income. Claudio Del Vecchio, chairman & CEO of Brooks Brothers said, “We partnered with Reliance Brands because of their passion for the Brooks Brothers brand, their track record with other premium brands, their expertise and connections within India.” The latest JV of Reliance in the fashion industry comes even as the Indian government is paving the way for 100% FDI in singlebrand retail. Many global fashion majors have preferred a JV route to build business in a promising but difficult market.

Darshan Mehta, president and CEO of Reliance Brands, said that the venture would, to begin with, open stores in large metros where shoppers scour for international labels in glitzy malls. Brooks’ price range starts from Rs 5,000 for a shirt to Rs 60,000 for a suit and is positioned against brands like Thomas Pink in the affordable luxury wear. While Brooks also offers women and children wear, Mehta said that the other categories will be introduced at a later stage in India. Interestingly, with its India entry, Brooks Brothers will, in a way, come a full circle as it was the first American brand to introduce the famous Madras Checks to America back in the 1920s.

Besides Brooks Brothers, the five-year-old Reliance Brands straddles brands like Kenneth Cole, Quicksilver, Steve Madden , Thomas Pink and Timberland , which it retails through 60 stores in the country.