Dollar Industries announced the G.O.A.T Brand Labs has acquired the entire share of Pepe Jeans Europe in a JV company in which the Kolkata-based innerwear major also holds a stake. Pepe Jeans, which had formed a 50:50 joint venture with Dollar Industries in India in 2017, has lately decided to exit the JV entity.
According to the company’s official statement, the JV company - Pepe Jeans Innerfashion- was incorporated to market 'Pepe' brand fashion innerwear, loungewear, sleepwear and tracksuits for adults and kids in India and neighboring markets.
The city-based knitwear major will now focus on premiumization with the new partner for the JV firm.
"The new partner - G.O.A.T Brand Labs - brings in expertise and technology to enhance our direct-to-consumer capabilities. With our JV, we intend to expand our product portfolio with more premium brands," Vinod Kumar Gupta, Managing Director at Dollar Industries, said.
Though sales of the JV firm were at Rs 14 crore as against Dollar's turnover of Rs 1,040 crore, the company holds ‘immense potential’ to increase its share in the premium segment, Gupta said.
With the new JV partner, the innerwear firm intended to innovate in the e-commerce space and increase direct-to-consumer sales. G.O.A.T would purchase one crore equity shares of Pepe Innerfashion from Pepe Jeans Europe BV.
"It will also subscribe two percent of additional non-voting equity shares on the existing and increased paid-up capital," the official said.
Gupta said the company will aim at 15-20 percent growth in turnover, and 10-15 percent in profit over the last fiscal.
Copyright © 2009 - 2024 Franchise India Holdings Ltd