VF Corp. has taken full control of its business in India with the acquisition of the minority stake in its joint venture it didn’t already own.
“Our business in India is strong, and now is the time to assume full ownership,” said Eric Wiseman, VF’s chairman, president and chief executive officer. “Anchored by our Lee and Wrangler brands, the Indian market will provide a robust platform for future growth in the Asia-Pacific region.”
VF owned 60 percent of the venture through its VF Mauritius subsidiary, with Arvind Ltd. holding the rest. VF said Wednesday it paid $52.3 million for the remaining 40 percent. Arvind said separately it would use proceeds from the sale to pay down debt.
The joint venture, VF Arvind Brands Private Ltd., was formed in 2006 to market VF’s Nautica and Kipling brands in addition to its two largest jeans labels.
Aidan O’Meara, president of VF Asia, said that he didn’t expect any impact on jobs or changes in operations as a result of the change in ownership. He described the business in India as “fast-growing and profitable” and said he expected a continuation of the “strong working relationship” VF has had with Arvind.
During the Oct. 24 conference call to discuss VF’s third-quarter results, Karl Heinz Salzburger, president of VF International, noted that revenues in India during the three months increased 58 percent, “fueled by continued growth in our jeans business there. We’ve maintained an aggressive store opening plan and are on track to expand our Asia store base by 25 percent this year, with 530 new doors in China and 125 in India.”
Arvind is a vertically integrated manufacturer and marketer of apparel and textile products with diverse retail holdings, including value retailer Megamart, and brand licenses based in Ahmedabad, India.
In the fiscal year ended March 31, it had net income of 1.35 billion rupees, or $29.5 million at average exchange for the period, on revenues of 27.26 billion rupees, or $596.9 million. It holds licenses from PVH Corp. for the Izod brand in India and the Arrow brand in India and other markets. PVH’s Tommy Hilfiger unit bought out Arvind’s 50 percent stake in their joint venture in September.
Through the nine months ended Sept. 30, net income attributable to VF hit $630.8 million, or $5.69 a diluted share, on total revenues of $6.55 billion.
A new name for the India venture, now a wholly owned subsidiary, has yet to be determined.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over the top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty