Source: The Economic Times, Feb 13, 2012
NEW DELHI: Italian luxury major Canali has entered into a 51:49 joint venture with Genesis Luxury Fashion, which currently has distribution rights of Canali-branded products in India. The company also plans to invest Rs 7.65 crore in India. The joint venture company will now sell Canali branded products in India exclusively.
Canali had sought approval from the Foreign Investment Promotion Board (FIPB), which gave its clearance last week.
“India is a market with a remarkable potential still to be exploited. By teaming up with Genesis Luxury we are confident we will be in a better position to strengthen our leadership in Indian luxury menswear market,” said Stefano Canali, general manager and third generation of the Canali family in business.
The Italian brand, which currently operates five exclusive stores in India through a marketing and distribution arrangement with Genesis Luxury, has had a successful business association with Genesis Luxury for over four years now and the joint venture was the next logical step, said Sanjay Kapoor, managing director, Genesis Luxury. The JV will now accelerate the brands growth in India by opening 10-15 stores over the next three-four years.
Canali is the first luxury brand to invest in India since 100% FDI in single brand retailing was allowed by the government earlier this year. Genesis, a franchise for several global luxury brands, has been operating five Canali stores in India-two in the National Capital Region, at the DLF Emporio Mall and at the Oberoi hotel in Gurgaon, and one each in Mumbai’s Palladium mall, Hyderabad’s Taj Krishna hotel and Bangalore’s UB City mall.