Burberry to set up joint venture with Genesis Colors

Nov 19, 2009

Burberry, a 153-year-old British luxury brand, is setting up a joint venture with fashion retailer Genesis Colors for a renewed focus in the Indian market, and hopes to receive the government clearance by the end of this week, reports Economic Times.

“We have yet to get government approval, so it is still a proposed JV,” quoted Angela Ahrendts, the chief executive officer of Burberry Group, in the report.

In India, Burberry hopes to repeat its success in China where it’s already operating 44 stores and enjoying double-digit growth in revenues, the report added.

“Obviously, India is on a different curve, we only have about two stores there now, but I see the same growth potential,” said the 49-year-old American chief executive officer of the British brand.

Burberry runs its two stores in India through a franchisee arrangement with Media Star Pvt Ltd. It will terminate the franchisee deal once the joint venture gets government approval.

Burberry will invest £2.1 million for a 51 per cent stake in the venture that has targeted a net turnover of £33 million by 2018-19, across 21 stores in the country, the report said.