GURGAON: The European brand Lerros, for its retail venture in India has entered into an equity tie-up with the city based garment maker House of Pearl Fashions (HOPF). The brand would allot 51 percent equity to the HOPF, HOPF chairman Deepak Seth said.
The chairman further clarified that initially the plan is to open ten retail stores in the national capital region at an investment of Rs 50 crore around the middle of next year; whereas 300 stores would be opened in the coming three years.
He also informed that the success of Esprit in India prompted them to explore the opportunity to bring Lerros to India. Nearly 80 percent of the products to be sold through Lerros stores in India would initially be imported.
On the other hand, HoPF plans to reduce the import contribution as the scale of operation goes up. The company may also introduce in its retail stores DCC and Kool Hearts brands, which it acquired in the US sometime ago.
HoPF is present across the value chain in the apparel business from design and development to manufacturing, sourcing, marketing, and logistics and warehousing. It also has warehousing capability to handle 2 million pieces of garment in UK and USA. HOPF, which has close to 100 overseas clients including J C Penney, Gap, Banana Republic, Carrefour and Tesco, has been a long-time supplier to Lerros.
Lerros, which is sold through 2000 points of purchase across Europe, offers full range of casual mens and women wear and competes in the same segment as another marqee European brand Esprit.