Calvin Klein joins Arvind brand & retail portfolio
Mar 24 2014 , chennai
Arvind Brands and Retail has picked up 49 per cent in Premium Garments for less than Rs 90 crore. The remaining 51 per cent stake is held by Phillips-Van Heusen Corp (PVH), which owns Calvin Klein globally. PVH and Arvind are also partners in a joint venture that licenses PVH’s Tommy Hilfiger brand in India.
“By having Arvind – a true leader in the Indian apparel industry and established PVH business partner – join this venture, we believe we are well-positioned to execute against and expand upon the growth strategy for the Calvin Klein brand in India,” said Tom Murry, Chief Executive Officer of Calvin Klein, Inc.
Besides the JV for Tommy Hilfiger, Arvind also has the license for PVH’s Arrow and IZOD.
“Globally Calvin Klein is a $10 million brand and in India it is valued Rs 125 crore. The target is to grow it to a size of Rs 500 crore in three years. Our studies show that there is a high level of awareness about the brand in India. We would be expanding the distribution network of the brand and leveraging our distribution channel for the innerwear,” said J Suresh, Managing Director and CEO of Arvind Lifestyle Brands.
Currently Calvin Klein is retailed through 41 exclusive brand outlets, apart from shop-in-shops in departmental stores. Premium will be adding 15 EBOs per year for the next two years. It will be also adding 20 to 25 shop-in-shops of the brand. However, Calvin Klein will not be visible in Arvind’s Megamart shops as of now.
The new JV will also expand the portfolio of accessories under Calvin Klein brand. This will include luggage carriers, hand bags, wallets and other leather articles.
Tommy Hilfiger, the other brand held by the JV, has a retail size of Rs 400 crore. Combined with Arrow and IZOD, PVH brands are valued around Rs 900 crore in India.
The Rs 1,340 crore Arvind Brands and Retail has 15 international brands under joint venture, license and distribution agreement. It also has 12 own brands.