Tommy Hilfiger Buys Out Murjani Brands’ Licence

International apparel giant bets big on Indian market, Arvind to continue its partnership

OUR BUREAU BANGALORE

    American lifestyle brand Tommy Hilfiger has bought the license for its trademarks and a 50% stake in a JV with Arvind Ltd that sells the American lifestyle brand in India from the Murjani Group.
“Direct engagement in the Indian market will enable us to make additional investments with the goal of growing the business,” Tommy Hilfiger Group CEO Fred Gehring told ET.
The terms of the deal were not disclosed.
Textile firm Arvind will continue to partner the joint venture as Tommy Hilfiger bets aggressively on the Indian market under PVH Corp, which acquired the designer brand in a $3-billion cashand-stock deal last year. But India was not part of the deal.
Murjani group chairman Mohan Murjani, who helped the legendary American designer float his brand in 1984, got the brand rights for India in perpetuity when he ceased to be an investor in Tommy in 1989.
ET on July 29 reported Tommy Hilfiger’s plans to buy the rights to have direct ownership of its brand in India, one of the fastestgrowing consumer markets in the world. Murjani had sublicensed its India rights for apparel, footwear and handbags to Arvind Murjani Brands.
The JV with Arvind will manage the other sub-licensees in India, the company said.
Murjani had sublicensed innerwear, watches and home textiles to Eastman Export group, Titan Industries and Creative Portico India, respectively.
The firm said it hopes to better align sublicenses with the master brand and improve the consistence of the brand experience.
Gehring said the company plans for additional growth in tier two cities such as Baroda, Vizag and Patiala where the growth patterns are more pronounced than bigger cities.
Tommy Hilfiger has 80 exclusive outlets in the country.
The India deal is in line with Tommy Hilfiger’s strategy of consolidating brand management in other international markets including China, Japan and Turkey. It allows integrating India into Tommy Hilfiger’s global platform for design and sourcing. Higher disposable incomes and overseas travel has driven the market for western fashion in India. More than 20 international brands fashion brands have been launch in India since 2005.
Tommy Seals the Deal Murjani helped designer Thomas Jacob (Tommy) Hilfiger launch the brand a quarter of a century ago in the US
Although he exited the venture in 1989, Murjani held the rights for Tommy Hilfiger in India in perpetuity
2006 Tommy Hilfi ger sold his company to Apax Partners for nearly $1.6 billion due to declining sales
2010 PVH Corp, formerly Phillips-Van Heusen Corporation, bought Tommy Hilfiger from private equity fi rm Apax Partners for nearly $3 billion