Pepe Jeans enters into joint venture with Dollar Industries
Pepe Jeans Europe BV, a leading international fashion brand enters into joint venture with Dollar Industries Limited with a 50:50 stake of both the JV partners. The venture will manufacture and market premium range of innerwear, loungewear, gymwear, nightwear and tracks in India under the brand name Pepe Jeans London
Kavindra Mishra, MD, Pepe Jeans India Limited, said that this tie up will help both the companies to work towards creating a premium innerwear brand in India to offer an exciting and innovative range of aspirational products to the customers. This venture would also bring in foreign direct investment for the textile sector in India. Pepe London would pump in INR. 36 crore worth of equity as its contribution over four years.
Pepe Jeans’ expansion into newer categories is a strategic progression of the brand. Their objective was to partner with a great Indian brand with a strong distribution and production set up. This is a strategic investment for the brand. They are funding the JV as per a strong scalable business plan and they believe that at present there is a gap in the market, and therefore immense potential for a strong innovative premium innerwear brand to grow.
Together with Dollar Industries Limited they are looking to spearhead growth and innovation in this category. With their strong brand name and Dollar Industries industry expertise will take both the brands to greater heights. Pepe markets outerwear and apparel under the Pepe brand in India.
Vinod Kumar Gupta, managing director, Dollar Industries Ltd., a listed company said that this JV will also combine fashion and functionality and offer products to the consumers.
The innerwear category is a high growth category in the apparel market. With higher discretionary spending and growing fashion consciousness, this segment is poised to grow exponentially. The JV with Pepe Jeans will give a boost to Dollar Industries and help Dollar increase their market share and penetrate the premium Innerwear segment.
This association will also help them in consolidating their market share. Pepe Jeans and Dollar both believes in Innovation and creativity which is the heart of their activities.
Dollar Industries has four manufacturing units in Kolkata, Tirupur (TN), Delhi and Ludhiana and produces wide range which includes vests, briefs, trunks with varying cuts and fits. In the apparel category, it has basic and fashion denims, tee-shirts, gym vests, bermuda and track pants. In the winter wear range, the company has premium thermals for men, women and children. Women wear includes lingerie, camisole and leggings.
The products manufactured under the joint venture will also be made available in Sri Lanka, Nepal, Bhutan and Bangladesh.