Ferragamo to form JV with DLF subsidiary

New Delhi, May 23 (UNI) Netherlands-based fashion house Ferragamo International B V (FIBV) is planning to form a joint veture (JV) company with real estate major DLF Ltd's subsidiary Nelia Retail Pvt Ltd for retailing 'Salvatore Ferragamo' brand of premium clothing and accessories in the country.

Ferragamo will invest about Rs 30 crore to own 51 per cent stake in the proposed joint venture company Ferragamo Retail Pvt Ltd, while DLF Group will hold 49 per cent.

FIBV has submitted a proposal to this effect to Foreign Investment Promotion Board (FIPB), sources said.

The company also proposes to open single-brand retail stores across the country, beside placing its goods in the departmental stores.

Ferragamo, best known for its scarves, ties and leather shoes and bags, operates in 80 countries either directly or indirectly or through alliances with local players in individual countries.

The proposed joint venture is expected to directly generate employment for about 200 people in the country.

Luxury brands are stepping up their presence in India to tap into rising incomes in Asia's third-largest economy.

Reliance Industries Ltd, the country's biggest company by market value, has sealed a joint venture with UK-based retailer Marks and Spencer Group PLC.

Bharti Group has also inked a wholesale partnership with US-based Wal Mart Stores Inc.

Fashion companies such as LVMH Moet Hennessy Louis Vuitton SA (LVMUY) and Gianni Versace SpA are keen to gain a stronger presence in emerging markets such as China and India to offset slower growth in Europe and the US.

UNI MP SR HS1252