Arvind Brands forms JV with US-based VF Corporation
New Delhi, Sep 1 (UNI) Arvind Mills Ltd today said its wholly-owned subsidiary Arvind Brands Ltd will form a 40:60 Joint Venture (JV) with US-based VF Corporation, for marketing various brands owned by it in India.
VF Corporation will pay 33 million dollar for the 60 per cent equity in the new company.
As per the agreement, the existing business including intellectual assets and licenses from VF for Lee, Wrangler, Nautica, Jansport and Kipling brands, currently held by Arvind Fashions Ltd will be transferred to this new company.
''The transaction further strengthens the relationship Arvind shares with VP Corporation and is a pointer to the faith in the future of branded retailing in India. The new company with far greater input from VF will be a force to reckon with in domestic branded apparel and accessories market,'' company's Chief Financial Officer and Director Jayesh Shah said.
The new company will be handling the designing, sourcing and marketing of the existing licensed brands and in the future may add a few more brands belonging to VF Corporation.
The retailing and the stores infrastructure will continue to be held by Arvind. Mr Darshan Mehta, currently the President of Arvind Brands, will be CEO of the new company.
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