Pepe Jeans & Dol­lar In­dus­tries to fo­cus on pre­mium fash­ion in­ner­wear

VMRD - - Brand Talk -

Pepe Jeans Europe BV has re­cently en­tered into a Joint Ven­ture with hosiery ma­jor Dol­lar In­dus­tries Ltd., with which both the com­pa­nies aim to ex­pand their mar­ket lead­er­ship in the ap­parel seg­ment of the coun­try. The Joint Ven­ture Com­pany is to man­u­fac­ture and mar­ket pre­mium range of Fash­ion In­ner­wear, Loungewear, Gymwear, Sleep­wear & Track Suits for Adults & Kids, in In­dia un­der the brand name Pepe Jeans Lon­don. These prod­ucts will also be made avail­able in Sri Lanka, Nepal, Bhutan & Bangladesh. VMRD chats up with Vinod Ku­mar Gupta, Man­ag­ing Di­rec­tor of Dol­lar In­dus­tries and Kavin­dra Mishra, MD, Pepe Jeans In­dia to know more about their vi­sion.

hat is the rea­son be­hind se­lect­ing Dol­lar In­dus­tries for such a busi­ness tie-up? Kavin­dra Mishra:

Pepe Jeans’s ex­pan­sion into newer cat­e­gories is a strate­gic pro­gres­sion of the brand. Our ob­jec­tive was to part­ner with a great In­dian brand with a strong distri­bu­tion and pro­duc­tion set up. Dol­lar In­dus­tries Lim­ited is a fore­most name in the in­ner­wear mar­ket and an­other rea­son be­ing, the in­ner­wear cat­e­gory is a high growth cat­e­gory in the ap­parel mar­ket. With higher dis­cre­tionary spend­ing and grow­ing fash­ion con­scious­ness, this seg­ment will con­tinue to grow ex­po­nen­tially. How­ever we be­lieve that at present there is a gap in the mar­ket, and there­fore im­mense po­ten­tial for a strong in­no­va­tive pre­mium in­ner­wear brand.

How is the in­vest­ment planned for the JV and the growth prospects like?

Vinod Gupta

: Both the JV part­ners i.e. Dol­lar In­dus­tries and Pepe Jeans will hold 50% stake in the JV Com­pany. The to­tal in­vest­ment is out­lined around INR 200 crores in next 4-5 years of time. Out of 200 crores, 72 crores will be of our brand equity from each com­pany hav­ing 36 crores and rest will be in tie ups with fi­nan­cial in­sti­tutes. We have an ex­clu­sive li­cens­ing agree­ment with Pepe Jeans and it is pri­mar­ily for 10 years with a de­cree of re­newal of an­other 10 years. Till March 2018, it will be in the stage of set­ting up the op­er­a­tions and thus we have ear­marked a profit of Rs 60 crore in the first fis­cal which will be 18-19 and from there on it is an­tic­i­pated to be of Rs.600 crores.

What re­tail chan­nels will be uti­lized in pro­mot­ing the pre­mium in­ner­wear cat­e­gory prod­ucts line?

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