Uniqlo to ink JV with Arvind for India entry

The 10-billion dollars (Rs 54,765 crores) Japanese

fashion retailer Uniqlo is inking a joint venture with Arvind to build a one billion dollars (Rs 5,476 crores) business in India by the end of the current decade. Expert says, Uniqlo’s parent Fast Retailing, which rivals Zara, H&M and Gap, is in final talks to form equity joint venture with Sanjay Lalbhai-led Arvind.

Industry sources say a definite deal would get through in the second quarter of 2013, making it the most significant global retailer after Sweden’s IKEA to firm up India plan. Uniqlo has been an unusually aggressive Japanese company that sells trendy and casual merchandise at competitive prices, with ambitions to become the world’s top fashion retailer toppling Zara and H&M.

The Uniqlo JV could add weightage to Arvind’s profile in retailing where Lalbhai wants to chalk up 2 billion dollars (10,953 crores) revenue by 2020. The 250 million dollars (Rs 1,369 crores) Arvind Brands & Retail has had long-term ties with Philip Van Heusen (PVH), Tommy Hilfiger and VF Corp, building businesses for these global biggies in the past two decades. Arvind also holds rights for UK retailers Debenhams and Next, besides operating its own value format Megamart.