Bangalore-based Arvind Lifestyle Brands Ltd, a subsidiary of Arvind Ltd, has signed an agreement to market and sell in India the basic and intimate apparels under the Hanes and Wonderbra brands, through a licensing agreement with the US-based Hanesbrands Inc., the company has said in a BSE statement.
Through this agreement, Arvind Lifestyle has acquired Hanesbrands’ India operations, but has not disclosed the value of the deal.
Commenting on the development, Sanjay Lalbhai, chairman and managing director of Arvind Ltd, said, “This transaction is a significant milestone as it signals our entry into the highly lucrative market of branded apparel essential with lingerie and undergarments.” He further added that the market segment of branded essential is estimated at over Rs 18,000 crore and is expected to grow over 18 per cent year on year. “This new market niche offers a completely distinct and promising business opportunity for us, which will only help us further consolidate our position in the Indian market,” said Lalbhai.
J Suresh, managing director and CEO of Arvind Lifestyle Brands, said, “We plan to grow the Hanes vertical within the company to achieve Rs 500 crore revenues over the next five years.”
It also plans to increase the Hanesbrands point of sales in India from the current 5,000 to 15,000 over the next three years.
The 100-year-old Hanesbrands offers high quality underwear, intimates, casual wear, hosiery and socks.
“We are very excited to enter the licence agreement with Arvind for two strongest global brands. Our Hanes and Wonderbra brands have great growth potential in the lingerie and branded apparel essential market in India,” said Gerald Evans, co-chief operating officer of Hanesbrands.
Last week, Arvind Lifestyle also announced that it had signed a long-term licensing agreement with Iconix Lifestyle India Pvt Ltd (a joint venture between Iconix Brand Group of the US and Reliance Brands Ltd) for Ed Hardy.
Arvind Lifestyle will hold an exclusive multi-year licence for manufacturing and distributing Ed Hardy apparel and accessories throughout India.
The company is targeting revenues of Rs 5,000 crore from its brands and retail business over the next five years by strongly leveraging its strengths in production, marketing and distribution. While Rs 3,000 crore will come from growing the business organically at a CAGR of 20 per cent, the rest will come through acquisitions, new brand launches and JVs.
(Edited by Sanghamitra Mandal)