Benetton partners Trent to sell luxury clothing1 min read . Updated: 18 Sep 2007, 05:45 PM IST
Benetton partners Trent to sell luxury clothing
Mumbai: Italian fashion major Benetton has tied up with Tata Group-owned Trent Ltd for selling its Sisley brand of clothing, as per a joint announcement made today.
Both companies have formed a partnership under which Trent will sell Sisley products through a franchisee route with Benetton not making any investment by way of equity.
Trent which operates retail chain “Westside" plans to invest ₹ 42-50 crore in the venture over the next five to seven years, Trent Managing Director Noel Tata told reporters.
He signed the agreement to this effect with Alessandro Benetton, Executive Deputy Chairman of 1.9 billion euro Benetton group.
Under the five-year agreement, Trent will manage and operate the three existing Sisley stores in Delhi and also open and manage 25-30 new stores in major cities starting with Bangalore and Hyderabad.
“It is an opportunity for Trent to participate in a fast growing premium market," Noel Tata said estimating the demand for luxury clothing to go up to ₹ 50-100 crore per annum.
Trent posted sales of ₹ 630 crore last financial year. Tata said franchising is a predominant way for foreign brands to come to India. “We believe Sisley has high potential for growth and we will leverage our experience to optimize the tremendous opportunity," he said.
The new stores will stock only the Sisley range which is a luxury upscale brand but Trent’s existing retail chain would not sell this brand.
Alessandro Benetton said Sisley has over 900 stores around the world. As per the agreement, it will sell its products to Trent. Trent will not be paying any fee to Benetton for the franchisee rights, he said.