Future may pip DLF for G-Star deal
Dutch fashion powerhouse G-Star, one of the fastest growing billion-dollar plus denim brand globally, is in talks with Future Group for a joint venture to foray into India.
By Boby Kurian & Shruti Sabharwal, TNN |
BANGALORE: Dutch fashion powerhouse G-Star, one of the fastest growing billion-dollar plus denim brand globally, is in talks with Future Group for a joint venture to foray into India. Sources said discussions have made substantial progress and the Amsterdam-based group may hold 51%, the maximum permissible FDI in single brand retail, in the JV.
Future Retail CEO Rakesh Biyani refused to comment. While sources confirmed talks, there is no confirmation available on the equity structure of the possible transaction. It is believed that G-Star has been scouting for a local partner, held exploratory meetings with many, including DLF.
G-Star has a strong European presence, competing with premium brands like Diesel and Replay in the $100 and above per piece segment. Unlike iconic Italian brand Diesel, which is strong on washes, G-Star puts a lot of emphasis on sewing and craftsmanship. In fact, G-Star is closely linked with raw denim fashion, and many would argue that ���raw denim��� is the cornerstone of the brand portfolio.
Interestingly, Future Group also holds the licensing for Replay in the Indian market, which is seen as potential clash of interest. However, sources added that the issue may have been sorted out mutually for the talks to move forward. Globally, G-Star operates mainly through a network of high-street standalone stores.
G-Star also has a strong sourcing operation in India, with Bangalore-based Fibres & Fabrics International being one of the suppliers to its international operations. In Asia, G-Star���s presence is limited to Japan and China. In the the past few years, a number of big denimwear brands like Diesel, Energie, Miss Sixty and Replay have unveiled India plans. Diesel has inked a JV with Arvind Mills while Miss Sixty and Energie has tied up with Reliance Brands.
On the back of rapid economic expansion and changing lifestyles, these global brands are hoping to tap into India���s relatively small, but growing market for premium-to-luxury priced goods, with fashion apparel, among others, topping the list.
Future Retail CEO Rakesh Biyani refused to comment. While sources confirmed talks, there is no confirmation available on the equity structure of the possible transaction. It is believed that G-Star has been scouting for a local partner, held exploratory meetings with many, including DLF.
G-Star has a strong European presence, competing with premium brands like Diesel and Replay in the $100 and above per piece segment. Unlike iconic Italian brand Diesel, which is strong on washes, G-Star puts a lot of emphasis on sewing and craftsmanship. In fact, G-Star is closely linked with raw denim fashion, and many would argue that ���raw denim��� is the cornerstone of the brand portfolio.
Interestingly, Future Group also holds the licensing for Replay in the Indian market, which is seen as potential clash of interest. However, sources added that the issue may have been sorted out mutually for the talks to move forward. Globally, G-Star operates mainly through a network of high-street standalone stores.
G-Star also has a strong sourcing operation in India, with Bangalore-based Fibres & Fabrics International being one of the suppliers to its international operations. In Asia, G-Star���s presence is limited to Japan and China. In the the past few years, a number of big denimwear brands like Diesel, Energie, Miss Sixty and Replay have unveiled India plans. Diesel has inked a JV with Arvind Mills while Miss Sixty and Energie has tied up with Reliance Brands.
On the back of rapid economic expansion and changing lifestyles, these global brands are hoping to tap into India���s relatively small, but growing market for premium-to-luxury priced goods, with fashion apparel, among others, topping the list.
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