Textile sector shops for Italian brands

In recent months, the Indian textile industry has taken a fancy to Italian brands. In the past week, two Indian companies have announced plans to acquire stakes in Italian brands.

A couple of days ago, a Bangalore-based textile manufacturer announced that it would pick up 70 per cent stake in Bellora, a luxury brand of bed linen from Italy.

And before that, Mumbai-based Morarjee Textiles announced that its board had approved the acquisition of Italian apparel brand, Men's Club.

Even high profile companies such as Raymond have announced Italian tie-ups. Two months ago, Raymond announced a 50:50 venture with Italy's Grotto Spa to bring the apparel and accessories brand, GAS, into India.

Andrea Bonardi, former secretary general of Indo-Italian Chamber of Commerce and currently Asia head of lingerie brand, La Perla, said that the attraction is mutual.

He said, "While Indian companies look at Italy as a global fashion capital, the Italian brands are attracted towards India's creativity in embroidery, designs and colours."

Pointing out that the financial clout of Indian partners is luring the Italian brands, Bonardi said, "Most of the Italian brands are looking for reliable and financially sound local partners in India who could put together their know-how of local, social and retail network."

Rajesh Kunnath, chief financial officer, Himatsinghka Seide agreed. "The ethnic and aesthetic designing sense and good manufacturing capabilities make India an attractive destination for international brands."

A Mumbai-based analyst, however, said Indian companies are tapping the Italian market to acquire brands or set up joint ventures for a relatively lesser price compared to a brand from the US.

Agreeing Vishesh Singh, senior consultant, Technopak Advisors, said, "Italian brands are product driven while American brands are strong in branding, which makes them sustainable for a longer period."

On whether the lesser-known Italian brands create impact when they are launched in India, Bonardi said, "Italian brands would have to blend their international profile with the local Indian lifestyle."

Unlike Dubai and Singapore, it will be difficult to sell products in India due to high import duties and other taxes. Hence, a mid-range brand could be sold as a luxury brand in India, he added.