Tommy Hilfiger acquires Murjani Group's Indian sub-licence
09 September 2011
US-based apparel giant Tommy Hilfiger Group (THG), has acquired Murjani Group's sub-licence for the Tommy Hilfiger trademarks in India and also a 50-per cent interest in the Arvind Murjani Brands Pvt Ltd (AMB), for an undisclosed sum.
Mumbai-based Murjani Group launched Tommy Hilfiger in India in 2004 by sub-licensing the New York-based company's clothes, footwear and handbags to a JV named Arvind Murjani Brands Pvt. Ltd.
The reconfigured JV, yet to be named, will now hold all Tommy Hilfiger sub-licenses for accessories and apparel.
The deal appears to a part of PVH Group's (formerly Phillips-Van Heusen Corporation) having a direct role in India and other emerging economics. "This move establishes the Tommy Hilfiger Group's direct interest in India and builds upon a pre-existing partnership with Arvind Ltd," Tommy Hilfiger said in a statement.
Clothing conglomerate PVH Group, which owns brands like Calvin Klein, Van Heusen and Arrow among others, had last year acquired Tommy Hilfiger from private equity firm Apax Partners for about $3 billion in a cash and stock deal. (See: Apax Partners to sell Tommy Hilfiger to Phillips-Van Heusen for $3 billion)
"India is an important market for Tommy Hilfiger and we are fully committed to the continued growth and development of our business here. The transaction allows us to integrate India into our global platform for design and sourcing, ensuring consistency of the brand, while providing dedicated regional expertise where needed," said Fred Gehring, CEO of Tommy Hilfiger Group.
Tommy Hilfiger will continue its partnership with Arvind going ahead, Gehring said.
Tommy Hilfiger products, which are estimated to have generated Rs250 crore last year, are sold in India through a network of more than 80 outlets across 30 cities.