After Gap, US' Children's Place keen on tie-up with Arvind Brands

Arvind Brands, a subsidiary of the Mumbai-listed Arvind Ltd, is turning out to be a hot property for international fashion names to be associated with. Barely a week after news reports said Gap Inc of the US is keen on entering India via a tie-up with Arvind, Children’s Place, theUS’largest children’s apparel retailer, has now evinced interest in teaming up the company.

According to a report in The Times of India, the $2-billion retail chain is in talks with Arvind for an India partnership.Arvind is already present in the kidswear category through its private label Cherokee Junior and Elle Kids. It also plans to launch Nautica Kids going forward.

Arvind already has tie-ups with global majors like Debenhams, Nautica and Next. It is close to announcing a joint venture with Japanese retail major Uniqlo early next year and has recently held exploratory talks with US mega apparel retailer Gap, the TOI report said.

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Arvind Brands sells various apparel labels like Arrow, Elle, Flying Machine, US Polo, Cherokee and Tommy Hilfiger among others, either through licenses or joint ventures. In September 2012, it acquired the business operations of British fashion retailers Debenhams and Next and American lifestyle brand Nautica in India from Planet Retail.

[caption id=“attachment_1052977” align=“alignleft” width=“380”]  Representational image. AFP.[/caption]

The acquisition marked the group’s entry into the department store segment which has retail chains including Shoppers Stop, Lifestyle and Pantaloons.

“They are bringing in some of the better brands… It is changing its position from a pure textile play to the real estate and now into a more brand play. They have started positioning themselves more on the branding and the retail, it raises confidence in the business strategy of this company,” Deven Choksey, MD, KR Choksey Securities told ET Now.

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Arvind Ltd’s turnover in 2012-13 was Rs 5,500 crore, one-third of which came from brands and retail. The company sees a 20 per cent growth this fiscal.

Earlier this month, TheTimes of India reported that Arvind may also buy 49 percent stake in Calvin Klein India.

“Calvin Klein has an existing India JV in which the Murjani Group and venture capital firm Matrix Partners India together hold a 49% stake. The Sanjay Lalbhai-led Arvind is expected to replace the two existing minority shareholders, sources told ToI.