New Delhi, Jan 14: Fashion retailer House of Pearl Fashions Ltd today said it has acquired 75 per cent stake in Hong Kong-based marketing company Simple Approach Ltd to strengthen its distribution channel in the overseas markets.
House of Pearl signed a Memorandum of Understanding (MOU) with Simple Approach towards this effect, said a statement. The company, however, did not disclose any financial details of the transaction. Simple Approach supplies to value and mid market retailers in the UK and the US and it expects to earn revenues of Rs 80 crores in the financial year 2007-08. With the acquisition, House of Pearl plans to expand its customer base into high fashion mid market segment.
By leveraging the Simple's sourcing capabilities, House of Pearls said it will be able to offer wider product ranges at very competitive prices and can achieve 25 per cent annual growth in its business every year for next three years.
House of Pearls has a presence in more than 10 countries and plans to launch the German Brand Lerros in the fashion retailing circuit of the country.