Pepe Jeans to spearhead business in India, plans to open 20 own stores by FY18', announces JV with Dollar
19th August 2017Category : Life StylePublished by :Rahul Verma Reading Time : 3 Minute News Sourced : India
In bid to strengthen its foothold in India, Denim and casual wear brand Pepe Jeans has decided to open around 50 own stores in India and 20 of which would be opened this fiscal.
"We have four own stores and will open 20 more in the current fiscal. The number will be gradually scaled up in the coming years. We already have permission for around 50 own single brand stores," Pepe Jeans India Managing Director Kavindra Mishra told .
The company wants to take advantage of the liberalised policies that allow foreign single-brand retailers to sell through their own stores as well as franchisee outlets. The plan will help it push its omni-channel retail strategy.
Currently, the company mostly retails from 217 exclusive franchisee stores and 1000 multi-brand stores.
Mishra said the company was taking over at least some of the franchisee stores to convert them into company owned and company operated stores.
Pepe Jeans has denim line, kids wear and will soon foray into inner wear products. The company will float a joint venture company in which city based Dollar Industries will be picking up 50 per cent stake in SPV.
The equity portion would be Rs 72 crore in the Rs 200 crore project in the SPV that projects to attain a topline of Rs 600 crore in its ninth or 10th year, officials said.
Mishra said, Pepe Jeans will foray into Indonesia by early next year. Initially, the market will be serviced from India till a critical mass is reached before local supply chain is established in the country.
Recently, Dollar Industries Limited announced an equal joint venture with Pepe Jeans Europe BV. The venture will manufacture and market premium range of innerwear, loungewear, gymwear, nightwear and tracks in India under the brand name Pepe Jeans London. These products will also be made available in Sri Lanka, Nepal, Bhutan and Bangladesh.
This venture would also bring in foreign direct investment for the textile sector in India. Pepe London would pump in Rs. 36 crore worth of equity as its contribution over four years, Kavindra Mishra, MD, Pepe Jeans India Limited, said.