To launch Grotto's GAS brand in India
MUMBAI: Raymond has announced a 50:50 joint venture with Grotto S.p.A of Italy to launch the latter's GAS brand in India.
The GAS brand will retail a lifestyle collection that will feature its core business in premium denim clothing, offering Indian consumers the latest in international fashion, according to a company release.
Rs. 50 cr. investment
With a total investment of about Rs. 50 crore, the joint venture will bring together Grotto's proven expertise in design and managing a successful brand and Raymond's expertise in apparel brand building and retailing and its vast distribution network. The market for jeanswear in India is estimated at 90 million pairs annually, of which 30 per cent has been captured by the branded segment, according to the company.
The new joint venture would distribute the brand through 600 retail outlets.
Commenting on the tie-up, Raymond Group President Pradeep Bhandari told reporters here on Friday that the joint venture company was aiming a touch a turnover of Rs. 125 crore in the next three years.
Speaking on the occasion, Grotto Vice Chairman Aldo Palmeri said: "We plan to distribute the GAS brand in the Indian market through flagship stores and other retail outlets over three years.'' Thereafter, Grotto plans to utilise the manufacturing capabilities of Raymond to export to other markets.