Italian luxury brand Furla eyes India expansion

Italian high-end accessories brand Furla plans to expand its

retail network in India once the government clears its joint venture with Genesis Luxury Fashion. The company is awaiting a go ahead from the Foreign Investment Promotion Board of India (FIPB) to have a joint venture here.

Furla, known for its handbags and shoes, has sought the government's approval to operate single-brand retail outlets through a 51:49 joint venture with Gurgaon-based Genesis, which currently runs two Furla stores as a franchisee and plans to open a third one either in Kolkata or Bangalore.

The joint venture plans to invest about Rs 13 crores in the first four years to open stores, with Furla bringing in Rs 6.6 crore, according to the application submitted to FIPB. The Bologna-based, family-owned brand is on an aggressive expansion drive in Asia. Earlier this year it announced a joint venture with China's Fung Group to open 100 boutiques there in four years.

Japan is Furla's biggest market, accounting for 27 percent of its total sales, ahead of home market Italy that contributes 25 percent of the firm's turnover. The company reported 18 percent jump in its turnover last calendar at 212 million dollars (about Rs 1,650 crores).