Arvind Brands hires Parag Dani to head Calvin Klein India business

Bengaluru: Arvind Brands and Retail Ltd, the local partner of American fashion retailer Calvin Klein Inc., has hired Parag Dani to head the latter’s business in the country, which the Indian company has been trying to restructure and expand after the US company scrapped a distribution arrangement with the Mumbai-based Murjani Group last March.

Dani was retail director at Levi’s. The progress of the joint venture, which generates an annual business of around ₹ 150 crore currently, was disturbed by the exit of Rishi Vasudev, who was chief executive officer of Calvin Klein India, from Arvind in November to join Flipkart.

Dani’s appointment comes even as Calvin Klein is trying to expand its portfolio in the country and boost sales from smaller towns, said J. Suresh, managing director and chief executive at Arvind Lifestyle Brands Ltd and Arvind Retail Ltd.

“After the formation of the joint venture we’ve undertaken various measures to streamline operations for the brand, right from stock correction to increasing the portfolio of offerings,” said Suresh.

Calvin Klein entered India via a distribution partnership in 2007. “Calvin Klein was one of the first few foreign brands that entered India when the market was just opening up to the idea of foreign labels,” said Ankur Bisen, senior vice-president, retail and consumer at consultancy Technopak Advisors.

The focus now seems to have shifted from mere distribution to a proper partnerships and a better supply chain, he added.

The company will add 15 Calvin Klein stores in the current year, in markets such as Vijayawada, Lucknow and Coimbatore. It currently has close to 50 standalone stores.

Arvind Brands has been working on strengthening its portfolio of foreign fashion labels. It is finalizing plans to open American retailer Gap Inc.’s first franchised store in the country by the end of the month. It also has the franchise rights for kids apparel brand Children’s Place.

For the year ended 31 March, 2014, Arvind Lifestyle Brands generated revenue of ₹ 1,742.04 crore. Arvind, which operates the Megamart retail chain, sells a mix of its own brands such as Flying Machine and Newport as well as licensed international brands including Arrow, Cherokee and Tommy Hilfiger.

Arvind bought out the stake in the Calvin Klein JV from the Murjani Group and private equity firm Matrix Partners last year .

US clothing maker PVH Corp. inherited the entire Calvin Klein business when it bought Warnaco Group Inc. for $2.9 billion in February 2013. Until then, PVH owned the right to sell formal wear and sportswear under the Calvin Klein label.