Reliance Brands, a part of Reliance Industries (RIL), said its association with global footwear and apparel company Timberland in India will not be impacted by VF Corporation’s global takeover of the latter.
US-based VF Corporation that owns over 30 brands including Wrangler, Lee, Nautica and JanSport said it will buy The Timberland Co in an all-cash deal for $2 billion.
"Legally, there will be no change in our partnership with Timberland in India. Our agreement with the company continues and the impact of the Timberland’s buy out by VF Corporation [on Reliance-Timberland partnership] would be zero," Reliance Brands President and CEO Darshan Mehta told PTI.
Qualitatively, however, VF Corporation will be able to better manage Timberland, he added.
Reliance Brands had signed a distribution agreement with Timberland in 2009 and opened the first outlet in August last year in India.
"At present, Timberland products are being sold at seven outlets in major cities of India," Darshan said.
Reliance Brands is also working on a retail expansion plan to increase Timberland’s presence in the country.
"By the end of this calender year, we have a plan to open six new outlets," Mehta said.
Timberland is a global footwear and apparel company with expected 2011 revenues of $1.6 billion.
In India VF Corporation, has a strong presence through Arvind and Planet Retail Holdings.
Source : Business Standard
