Savile Row snaps ties with Alok Industries

After government approved 100 per cent FDI in single-brand

retail, many global companies are eyeing independent entry into the country. London-based Savile Row, known for its famed business suits and shirts, and Mumbai-based textile major Alok Industries are also looking to end their 15-month partnership in India. But instead of going solo, the company is scouting for a new local partner in India.

It was a second innings for Savile Row in the country after it ended a 30-year agreement with Forbes Brands, a unit of the Shapoorji Pallonji Group, in 2010 as Shapoorji wanted to get out of the segment. In October 2011, Alok H&A, the retailing arm of Alok Industries, signed an exclusive production and distribution agreement with Savile Row to produce and distribute the former’s products in the country.

India is an important market for the British brand as nearly two-third of its revenues comes from Asia. The agreement will automatically come to an end as Alok prepares to shut all H&A stores. It has already closed 45 loss-making H&A stores of the 190 exclusive outlets it had. Alok is looking at exiting all its non-core businesses such as retail and real estate, to reduce its debt burden.