Footwear maker Skechers USA, Inc. has bought out Future Group from a joint venture in India, as it looks to rapidly expand its retail network in the South Asian nation.
Skechers purchased the 49% stake held by the Kishore Biyani-led retail conglomerate to make Skechers South Asia Pvt. Ltd a wholly owned subsidiary, it said in a statement.
“Skechers is still a relatively young brand in this country, having been in India for less than a decade. Yet, in the last five years, we have seen significant growth through our joint venture,” said Michael Greenberg, president at Skechers.
The company said India is one of its fastest-growing and largest international markets. Skechers has 223 retail stores in India. Of these, 61 are owned and operated by Skechers while the remaining are third-party owned. The company plans to open an additional 80 to 100 stores in 2019. Of these, about 20 will be company-owned, company-operated.
Skechers, which competes with the likes of Adidas, Nike, Reebok and Puma, didn't disclose financial details of the deal to buy Future Group's stake. However, The Economic Times reported, citing officials it didn't name, that the company paid Rs 580 crore for the 49% stake.
Rahul Vira, CEO at Skechers South Asia, said the decision to buy out Future Group's stake will enable the company to "amplify its growth plans, accelerate expansion of our operations and build a stronger network" to gain market share in India.