Wednesday, November 14, 2012

Reliance Brands to buy 50% stake in GAS jeans JV

Italian fashion apparel maker, Grotto, best known for its jeans brand GAS, is set to strike a strategic partnership with Reliance Brands, a unit of Mukesh Ambani-controlled Reliance Industries, in an attempt to revamp its India play. Reliance Brands will buy a 50 per cent stake with management rights in a deal which is in the final stages.

GAS made its India debut in 2006 through Raymond and parted ways three years later. In 2010, GAS returned to the country through a completely owned cash-and-carry format, reaching customers through the franchisee route. 

The Grotto family is expected to assign the brand rights for the Indian market to the new equally owned joint venture company, Economic Times reported, citing sources. 

The GAS label, launched by Claudio Grotto in 1984, is the latest lifestyle brand to tweak its India strategy to sharpen its focus on one of the world's fastest growing economies to offset slowing growth in western markets. 

GAS or Grotto Apparel Sportswear has few exclusive outlets and presence in department stores in the country currently. Reliance Brands operates about 60 stores for a slew of international fashion brands like Diesel, Kenneth Cole, Thomas Pink, Paul & Shark and Zegna among others. 

The company, which has the backing of the deep-pocketed Reliance Industries, wants to be a platform for international labels across lifestyle and accessories aiming to enter the Indian market.

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