Louis Vuitton plans luxury house in India
08 August 2012
LVMH Moet Hennessy Louis Vuitton is planning to set up a new luxury brand in India through its private equity arm, L Capital.
The investment firm is planning to invest approximately $36.2m in the new venture and is in talks with Indian designers Rohit Bal and Sabyasachi Mukherjee.
L Capital plans to sell through retailer Evoluzione, which has a presence in Delhi, Chennai and Bangalore and stocks several designer brands. This will enable the new business to get a strong foothold in the market, and L Capital hopes to then be able to scale the brand domestically and globally.
L Capital already has a presence in India and bought an 8% stake in fashion retailer Fabindia in February. Fabindia was featured in the M&M Global 100 Emerging Brands to Watch supplement published earlier this year.
Reports state the private equity division of the luxury brand currently has a fund of approximately $500m for investing in Asia, with suggestions it could be raising this fund to $800m. The company has stated it is seeing better returns on Asian investments than US and European ventures, attributing the strong performance to Asia’s growing middle class.
The private equity firm has also recently invested in the Chinese fashion market. It took a 10% stake in Ochirly, part of Trendy International Group, in February and became Xinhe’s second largest equity shareholder in January.
David Hing, London