Arvind rallies on forming Indian JV with Calvin Klein

The stock has surged 7% to Rs 157 on forming Indian JV with PVH Corp for operation of Calvin Klein business in India.

Arvind Limited has moved higher by nearly 7% to Rs 157 on the BSE after the company said that it has joined Indian joint venture with PVH Corp for operation of Calvin Klein business in India.

PVH Corp, the owner of the Calvin Klein trademarks worldwide, and Arvind announced that Arvind Brands and Retail, a subsidiary of Arvind, has replaced PVH's prior joint venture (JV) partners in Premium Garments Wholesale Trading, the licensee of the Calvin Klein trademarks in India.

In connection with the transaction, Calvin Klein, Inc., a wholly owned subsidiary of PVH, entered into a new license with Premium Garments to distribute Calvin Klein Jeans apparel and accessories and Calvin Klein Underwear products in India, Arvind and PVH said in a combined statement.

This new arrangement takes advantage of PVH's control of the brand vision for these two Calvin Klein product categories resulting from its acquisition of The Warnaco Group, Inc. in February 2013 and Arvind's operational expertise in the region, and is intended to maximize the market opportunities for these product categories throughout India, the statement from Arvind and PVH said.

The JV will focus on the expansion and enhancement of the existing Calvin Klein Jeans apparel and accessories (including belts, bags, and small leather goods) and Calvin Klein Underwear (including sleepwear and loungewear) businesses.

PVH and Arvind are also partners in a JV that licenses PVH's Tommy Hilfiger brand in India.

The stock opened at Rs 148 and a combined 4.15 million shares changing hands on the counter so far on the BSE and NSE.