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| Reliance Brands calls off JV plan with another Italian firm Sixty Group | |
| Raghavendra Kamath / Mumbai October 14, 2008, 0:49 IST | |
Reliance Brands, part of Mukesh Ambani’s Reliance Retail, has called off its joint venture plan with Italy’s Sixty Group to set up stores in the country. The company took this step following certain disagreements with the Italian company, according to sources.
In December 2007, Reliance Brands announced a 51:49 joint venture with Sixty Group, in which the latter was to hold a majority stake. Under the single brand retailing route, Reliance Brands was to set up standalone stores for brands such as Miss Sixty, Energie, Killah and Sixty and the authentic wear Murphy&Nye, Refrigwear, Richlu & Baracuta.
“Both companies had signed Memorandum of Understanding (MoU) in December 2007, which was non-binding on both parties. The MoU could not be converted into a joint venture ultimately,” sources said. Darshan Mehta, president and chief executive of Reliance Brands, declined to comment on the development.
The JV was expected to open 56 exclusive high-end stores for the four focus brands, Miss Sixty, Energie, Killah & Murphy&Nye, in the top-10 cities in the first three years. As per the original plans, Darshan Mehta was to spearhead the JV with separate business heads for each of the four brands.
Renato Rossi-led Sixty Group’s brands are sold worldwide in 7,000 point of sales in more than 100 countries and customers include those from Hollywood-A listers.
Though Reliance Brands could not work out a JV with Sixty group, the company is going ahead aggressively to open other high end Italian brands in the country, sources added.
Reliance Brands already announced a 50:50 joint venture with Dama SpA of Italy to launch its luxury sportswear brand Paul& Shark in the country.
“We will open our Paul&Shark and Diesel stores by April 2009,’’ Mehta told Business Standard. Reliance Brands stores will be initially set up in Mumbai and New Delhi and later move into other cities, he said.
Reliance Brands,which was set up in 2007, plans to pick up stakes, both minority and majority, in Indian brands to grow its business in the country and launch its own brands.
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