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Oct 03, 2011, 07.25 PM IST | Source: CNBC-TV18

Tommy Hilfiger bets big on India; Arvind JV a win-win deal

Global apparel and accessories brand Tommy Hilfiger has picked a more direct route into India. It has bought out its partner Murjani Group's stake in Arvind Murjani brands and become Arvind's new 50:50 partner, reports CNBC-TV18's Vineetha Athrey.

Global apparel and accessories brand Tommy Hilfiger has picked a more direct route into India. It has bought out its partner Murjani Group's stake in Arvind Murjani brands and become Arvind's new 50:50 partner, reports CNBC-TV18’s Vineetha Athrey.

For apparel giant Arvind, every end is a new beginning. After all, the Murjani Group has been for many years, Tommy Hilfiger's link to the Indian market.

Fred Gehring, the CEO of the Tommy Hilfiger Group, “Tommy Hilfiger is directly controlling the brand in general for the Indian market and has decided to do so in a total 50:50 JV with Arvind Ltd. We will, jointly with Arvind, be able to fund a stepped up level of engagement and accelerated growth plan. Also the approach is going to be substantially more invested, committed and engaged and will lead to accelerated growth trajectory.”

For Arvind, Tommy's direct involvement means better cash flows and greater brand visibility through standalone stores and franchisee agreements. For Tommy, this is a boost to its plans to expand presence in emerging markets and accelerate growth.

Tommy hopes to double its current revenues from India to Rs 600 crore over the next two years. This will involve adding 30 stores to the existing 80. Tier-2 and Tier-3 cities will also get more attention.

Gehring added that there is an increasing level of interest in tier-2 and 3 cities. “In terms of franchise development it very much depends on the emergence, so to say, of the tier 2, tier 3 cities,” he says.

Over the next few months, this and the other Tommy Hilfiger stores across India are set to get a complete makeover in order to reflect the brand's global look and feel.

In addition, Tommy Hilfiger is also gearing up to introduce several new formats in India, starting with the national rollout of its children's wear format this fiscal.

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