Brand House Retail, a subsidiary of the Mumbai-based, Rs 1,000 crore, diversified textile company S Kumars Nationwide Limited (SKNL), is in advanced talks with US and European luxury brands for India operations.
When asked about the new brands that are set to partner with Brand House Retail for India operations, an SKNL spokesperson told Indiaretailing: “We are not declining the news, the company is in talks with a few European and US brands. We are not at a stage to reveal more details due to industry speculations. However, I can assure that we expect few deals to get materialised soon.”
The company had already launched two international brands, Escada and Dunhill, in the last few months. It has also entered into an agreement to launch a premium UK-based international men’s clothing brand, Stephens Brothers. The company plans to roll out 10 exclusive Stephens Brothers stores across the country by the end of this calendar year.
According to reports, the company’s top brass visited Europe and Paris last week and was in discussions with a couple of foreign brands in the super premium and luxury space. Earlier this year, Brand House received private equity funding of $100 million.
“The group’s net profit for the quarter ended September 2007 rose 57.59 per cent to Rs 43.21 crore, as against Rs 27.42 crore for the corresponding quarter in the previous fiscal. The net sales during the reporting quarter stood at Rs 391.10 crore, as against Rs 278.25 crore in the same quarter of 2006-07. Its subsidiary Brand House Retail has been hived off into a separate company and will be listed in the near future,” the spokesperson added.
Brand House plans to unveil around 1,000 owned or franchised exclusive retail stores by 2010 and at least 10 Dunhill stores across seven cities in the next two years. Escada has stitched a four metros expansion strategy.
The company is investing Rs 500 crore on retail stores expansion, to be funded through internal accruals, debts and equity.
– Vishnu Rageev R, Bangalore Bureau