Maxwell in JV talks for European lingerie products

Mumbai-based Maxwell Industries, owner of the VIP and Rivolta innerwear brands, is in final stage of discussion with a couple of European lingerie brands for a joint venture (JV) to launch the brands in India.

Sunil Pathare, director, Maxwell Industries said the group was close to forging a JV with the companies to introduce innerwear brands for both men and women in the country.

With the Indian consumer starting to spend more on brands, the international lingerie brands such as La Perla and Etam have already announced their plans to enter the domestic market.

The branded innerwear market in India is pegged at around Rs 750 crore.

In addition to this, the group will also be entering the retail side of the business with its exclusive Lovable lingerie boutiques which will be launched in the next financial year.

Pathare said the company planned to open 120 exclusive boutiques mainly in the metros and tier I cities. Apart from this, they would also be considering other formats which the group was in the process of finalising. "The plans for the international brands are separate from the retail plans," said Pathare.

Maxwell is also in talks with different players to raise funds for its expansion. Pathare said that the group intended to raise over Rs 200 crore, of which Rs 45 crore had already been raised through a 14.5 per cent equity stake sale to Reliance Capital Partners in May this year.

"There are a few proposals and we are in talks with a few players to raise funds for expansion, but nothing has been finalised as yet," said Pathare.

In division, the private equity fund from the Future Group is reportedly among the players looking at acquiring a stake in Maxwell. However Pathare refused to comment on the issue.

The group is currently awaiting the High Court approval for the merger of group companies, Lovable Lingerie and Microtex India with itself, following which the size of the company is likely to go above Rs 300 crore. Apart from Lovable, other Maxwell brands include VIP, Daisy Dee and Vanity Fair.