Arvind Mills and Italian denimwear major Diesel have formalised a joint venture (JV) to launch Diesel in India. Diesel will hold a 51 per cent stake in the new company, Diesel India Fashion Arvind, with the balance 49 per cent to be in the control of Arvind Brands.
“After a long, careful and detailed search, Diesel has chosen to partner in this initiative with Arvind, one of the main players in the textile market, known for its successful launch and development of American brands in the local market,” Arvind Mills said in a statement to Bombay Stock Exchange (BSE).
Diesel India Fashion Arvind, to be headquartered in Bangalore, will launch two flagship stores – one in New Delhi and the other in Mumbai, by the year-end. The plan is to open 15 stores within the next three years.
Darshan Mehta, CEO, Arvind’s JV with VF Corp, said the new company would be setting up standalone stores. The investment per store would be in the region of Rs 3 crore.
Headquartered in Molvena (Vicenza), in northeastern Italy, Diesel is a 950-million-euro company managing 15 subsidiaries across Europe, Asia and the Americas. Diesel employs 3,400 people worldwide.