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International apparel giant Tommy Hilfiger Group (THG), in an effort to integrate India into its global platform for design and sourcing, has made a buy out of the Murjani Group’s licence for the Tommy Hilfiger trademarks in India and acquisition of its 50 per cent interest in the Arvind Murjani Brands Pvte Ltd (AMB).
However Arvind Ltd, which is the other partner in the business, would continue with its share in the partnership. However, the financial details of the buyout have not been made public.
In the Amsterdam-datelined press statement of THG, released by Arvind Mills to the stock exchanges, Tommy Hilfiger, owned by the PVH Corp, said that it had completed a transaction with the Murjani Group leading to its `acquisition of a direct interest in the Tommy Hilfiger business in India’. This included the buyout of the Murjani Group’s license for the Tommy Hilfiger trademarks in the country and the acquisition of its 50 per cent interest in the AMB, which was the apparel sub-licensee of the Tommy Hilfiger brand and of which Arvind Ltd was the other partner.
The statement said that the reconfigured JV would continue its existing businesses and take on the management of other sub-licensees in the country and it shows THG’s direct interest in India and `builds upon a pre-existing partnership with Arvind Limited’. This was in consonance with similar moves made by Tommy Hilfiger in other international markets as part of its strategy of `consolidating brand management and approaching markets in a more coordinated manner’.
Mr.Fred Gehring, CEO of THG, reaffirming his company’s commitment to India, said that the country was an important market for the brand and the rejig would allow it `to integrate India to our global platform for design and sourcing, ensuring consistency of the brand while providing dedicated regional expertise where needed’.
Expressing happiness over continued partnership with Arvind Limited, he said that continuing the relationship would allow THG to benefit from its expertise in the Indian apparel and manufacturing business.
Tommy Hilfiger-branded produces were sold in India in 30 cities in the country
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