Lacoste India licence holder in talks to sell permit

Amit Judge, who holds the licence for Lacoste wants to end the 23-year-old partnership with the French clothing and accessories brand and is now looking at selling the India licence. The licence is valued at Rs 150-Rs 180 crores. He is in talks with Arvind’s retail arm as well as Raymond.

Sources believe that there is a disconnect on the valuation and so far both Arvind and Raymond have shown little interest at the present price. In 1993, Judge of Kolkata-based Turner Morrison and the man who brought Barista to India, got the licence to manufacture and market Lacoste apparel in India. Sports and Leisure Apparel Ltd, the licensee company for Lacoste in India, is responsible for the manufacture of garments and trading of apparel, leather products and accessories such as perfumes, wallets, bags, footwear, eyewear and wristwatches. The company is based in Noida and about 90 per cent of Lacoste products sold in India are manufactured locally.

A licencing agreement involves rights to manufacture and design products locally while franchising entails rights to sell the product. A licence holder has more control if the local unit. Judge holds the perpetual licence for manufacturing and marketing Lacoste products in India but the company is run by a professional team, headed by Rajesh Jain, MD and CEO, Sports and Leisure Apparel. The company is promoted by Judge, who is the chairman with 9.27 per cent shareholding.

Lacoste has 50 outlets in the country and is expected to double its store count in next five years. It also has plans to launch its online platform. Apparel makes up 89 per cent of sales while footwear accounts for 8 per cent.