VF Corporation has agreed to establish a joint venture with Arvind Mills, Ltd. to design, market and distribute VF branded products in India. The joint venture, VF Arvind Brands Private Ltd., will initially encompass VF’s Lee®, Wrangler®, Nautica®, JanSport® and Kipling® brands, which were previously marketed under licensing and distribution agreements with Arvind Fashions, a subsidiary of Arvind Mills, Ltd., and will serve as the vehicle for launching additional brands in India in the future. VF will own 60 percent of the joint venture, and Arvind Mills, Ltd. will own 40 percent.
“The strength of Arvind’s distribution gives us a clear entry into one of the world’s most dynamic and fastest growing markets,” said Mackey J. McDonald, Chairman and Chief Executive Officer of VF Corporation. “With its rapidly expanding economy, growing retail base and favorable demographic characteristics, India presents a source of enormous future growth for our brands. This move underscores our commitment to leveraging VF’s powerful portfolio of brands to capture new growth opportunities in expanding markets.
“Arvind Mills and the management team that built our Lee® and Wrangler® brand business in India over the last decade have been great partners. Extending our partnership with this joint venture is a logical evolution of our strong relationship,” McDonald added.
VF’s wholesale business in India with its Lee®, Wrangler®, Nautica®, JanSport® and Kipling® brands is approximately $40 million annually and is expected to grow more than 25 percent per year, excluding the addition of other VF brands.
Darshan Mehta has been named Chief Executive Officer of VF Arvind Brands Private Limited, reporting to Eric Wiseman, Chairman of the joint venture company and President and Chief Operating Officer of VF Corporation. Mehta previously served as President of Arvind Brands, Ltd. The business, which will be headquartered in Bangalore, India, will have approximately 180 employees.
“The branded apparel market in India is approximately $4.4 billion and continues to grow as consumers are becoming increasingly brand and fashion conscious. There is a tremendous opportunity to market VF’s highly popular lifestyle brands and grow VF’s business in India,” Mehta said.
