Furla to team up with Genesis for JV

Italian premium handbag and accessories retailer

Furla has sought the government’s approval to open single-brand retail outlets in the country through a joint venture with New Delhi-based Genesis Luxury Fashion. The brand known for its women’s handbags and shoes has sought the Foreign Investment Promotion Board’s (FIPB) approval to form a 51:49 percent JV with Genesis.

Genesis already runs two Furla brand stores under the franchisee route since September. These stores would be converted into joint venture stores once the alliance gets the government nod. The joint venture plans to invest about Rs 13 crores in the first four years to open stores in different cities, with Furla pumping in Rs 6.6 crore. Since Furla will own 51 percent stake in the proposed joint venture, the business will not attract the single-brand investment clause that 30 percent of the merchandise sold in the country should be sourced from small local vendors.

Furla sells bags, shoes and other fashion accessories through 320 single-brand stores and more than 1,200 points of sales in department and specialty stores in 71 countries. Genesis operates various stores of international luxury and high-end brands in India including Bottega Veneta, Jimmy Choo, Canali, Paul Smith and Sephora.