Montblanc re-entering India market

Montblanc wants to end its agreement with the Dilip Doshi

-promoted Entrack International, its Indian distributor, and re-enter the country (probably before Diwali) through a majority owned subsidiary. It is expected to takeover the operations of the 17 stores that Entrack runs in India. One of the first luxury brands to be sold in India through the organized retail format in the post-liberalization period, Montblanc was brought in by Doshi more than a decade ago and retailed at five-star hotels. Though Dilip Doshi may get anywhere between $25 and $50 million to cede control, he is expected to continue his relationship with Montblanc either through a minority stake or as an advisor. Interestingly, he is the same Dilip Doshi who played cricket for India in quite a few Tests.

Though largely known for pens, German luxury brand Montblanc sells an entire range of products and accessories which include watches, eye wear, cuff links and leather products like belts and wallets. This is not the first time a luxury brand in a new market has switched from one partner to another. For instance, in 2006, Gucci entered India through a franchise agreement with the Murjanis but then went on to float a subsidiary with a 51 per cent stake, the maximum allowed for foreign companies under the single brand retail format. The luxury market, currently estimated at around $4 billion, is growing at a compounded annual rate of 25 per cent and is expected to touch $14.72 billion by 2015.