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- By Parinda News Bureau, March 20, 2006, 12:29 IST
UK's Lee Cooper is set to float a joint venture with one of the arms of the Kishore Biyani-led Pantaloon group. Lee Cooper and a Pantaloon company have reached an understanding to float a 50:50 JV, which will set up exclusive stores retailing the entire product range from footwear to apparel to accessories. Towards this, Lee Cooper has already issued termination notice to end the existing licensing agreement with Indus Clothing in the domestic market.
Lee Cooper, which started as ‘The great British denim company' before diversifying into other product categories, operates about 450 stores in 70 countries across the world.
The Centre recently allowed 51 % FDI in single brand retailing — branded stores selling products under single name—as part of the gradual opening up of the retail sector to foreign investment.
Following this, global brands like Gap and Banana Republic, which rely heavily on retail as the sole distribution channel, were expected to take advantage of the changed scenario in the near future.
However, there was a different opinion that the government's move on single brand FDI was a bit inadequate, and it may not prompt the global brands looking at or operating in India, to take the equity route. In this context, Lee Cooper's move is bound to be significant and could well be the trigger point for FDI.
There is no clarity on which Pantaloon company will forge the JV with Lee Cooper, though the name of Indus-League Clothing — the lifestyle apparel company in which Mr Biyani holds 68% stake — is doing the rounds. It must be mentioned that Indus-League has already announced plans to bring in a few international brands, either through the licensing or JV route.
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