International apparel giant Tommy Hilfiger Group (THG) today said it has bought out Murjani Group's licence for Tommy Hilfiger trademarks in India besides acquiring a 50 per cent interest in Arvind Murjani Brands (AMB) for an undisclosed amount. AMB has been the apparel sub-licensee of the Tommy Hilfiger brand in India. "This move establishes the Tommy Hilfiger Group's direct interest in India and builds upon a pre-existing partnership with Arvind Ltd," Tommy Hilfiger said in a statement. While the company did not elaborate on the equity structure of AMB post the transaction,it said,"Arvind Ltd is the other partner in AMB. The reconfigured joint venture will continue its existing businesses going forward,as well as take on the management of other sub-licenses in India." The Tommy Hilfiger Group is owned by NYSE listed PVH Corp which also owns other iconic brands such as Arrow,Calvin Klien,IZOD and Bass. Commenting on the development Tommy Hilfiger Group CEO Fred Gehring said,"India is an important market for us and we are fully committed to continued growth and development of our business here." "The transaction allows us to integrate India into our global platform for design and sourcing ensuring consistency of brand while providing dedicated regional expertise when needed," he added. Designer Tommy Hilfiger partnered with the Mohan Murjani-led Murjani Group of India in 1985 to launch the brand and the company in the United States. In 2004,Murjani Group launched the brand in India. "We are pleased to be continuing the Tommy Hilfiger brand's partnership with Arvind Ltd with this exciting new venture. "We believe that continuing the relationship will allow us to benefit from their expertise in the Indian apparel and manufacturing business,both with Tommy Hilfiger brand as well as our sibling brands,IZOD and Arrow," Gehring said. The brand is distributed in India through a network of more than 80 stores and shop-in-shops in 30 cities. Arvind Ltd's scrips closed at Rs 85.20 per share,up 2.96 per cent from the previous close on the BSE.
