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S Kumars signs JV with Donna Karan

By FashionUnited

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S Kumars Nationwide has entered into a joint venture agreement

with Donna Karan International (DKI), part of the luxury goods group LVMH Moet Hennessy Louis Vuitton. The joint venture, which is valid until 2015 with an option to extend for seven more years, allows S Kumars to source design and distribute DKNY menswear globally. S Kumars will hold 80 per cent in the joint venture. The 20 per cent ownership of Donna Karen is expected to come down to 10 per cent as investments from SKNL India increase over a few years. The JV is targeting revenues of $300 million in five years and S Kumars Nationwide is investing $20-$25 million as working capital over three years.

DKI designs and sells mainly women’s apparel, sportswear, accessories and shoes under the DKNY and Donna Karan brands. Because DKNY is a specialist in women’s wear they were looking at licensing out the menswear business. S Kumars sells apparels under a variety of brands at different price points, from Reid & Taylor which caters to the premium and upper-middle segment of the suiting market to Belmonte suits and shirts for the economy segment. The brand is looking to raise $100 million by spinning off Belmonte into a separate unit in the coming months and is also looking to list its subsidiary Reid & Taylor.

DKNY
Donna Karan International
S Kumars