House of Pearl to acquire Simple Approach in Hong Kong

House of Pearl Fashions Ltd says it has signed a memorandum of understanding (MOU) to acquire a 75-per cent stake in the Hong Kong-based marketing company, Simple Approach Ltd.

The company says the acquisition is aimed at strengthening its distribution in the overseas markets.

The acquisition will also help House of Pearl Fashions expanding its customer base into the high fashion mid market segment. Simple Approach is a supplier to high and and mid market retailers in the UK and the US and expects revenues of Rs80 crore in the current financial year, which is projected to grow to Rs200 crore by FY 2010-11.

The fashion company plans to leverage its sourcing capabilities to offer a wider product range.

House of Pearl Fashions says it is the only company in this sector with presence in more than 10 countries and controls complete supply chain from design and development to customer delivery.

The Company is looking at entering fashion retailing in India with plans of launching a German Brand Lerros.