The Netherlands-based Ferragamo International B V (FIBV) and Italian designer leather goods brand Piquadro are all set to make an entry into India to tap the country’s $3.5 billion premium lifestyle market. Both the international brands are expected to take the single-brand retailing route to expand their footprints in the country.
The two designer brands have received foreign direct investment (FDI) clearance from the Foreign Investment Promotion Board (FIPB).
Media reports had earlier said that Ferragamo was pursuing a joint venture (JV) with real estate major DLF Ltd’s subsidiary Nelia Retail Pvt Ltd. However, details about Piquadro’s Indian JV partner could not be ascertained as the company’s chairman and CEO Marco Palmieri could not be reached for comments. DLF officials were also not available for comments.
Ferragamo will be investing Rs 30 crore and Piquadro Rs 1.53 crore for buying a 51% stake each in their respective Indian JV companies.
Ferragamo will set up Salvatore Ferragamo stores in DLF’s luxury retail malls that are coming up across the country. These stores will retail Salvatore Ferragamo brand of premium clothing and accessories. The Gurgaon store will be launched at the DLF Emporio mall, which is under construction.
Ferragamo currently has one store in Mumbai. The company is said to be planning five new stores in Delhi, Bangalore and Mumbai.
Piquadro operates its retail chain in 50 countries. Its leather product range includes professional bags and briefcases for men and women, travel items, planners, portfolios, small sundry items and a wide array of accessories.
August 8, 2008
Source: DNA
