Louis Vuitton plans Asia plant in Pondy
BOBY KURIAN & AMANPREET SINGH
TIMES NEWS NETWORK
[ TUESDAY, JANUARY 09, 2007 03:43:24 AM]
BANGALORE/NEW DELHI: Didn’t we say India rocks the world? The venerable French luxury goods giant Louis Vuitton, part of the $17-billion Moet Hennessy Louis Vuitton (LVMH) group, is setting up its first manufacturing plant in Asia at Pondicherry through a joint venture, sources said.
LV — best known for its expensive and edgy bags — has identified the Dilip Kapur-owned Hidesign, the domestic high-end leather goods brand, as its JV partner. The greenfield venture, likely to be a 50:50 JV, is expected to come up in a 30-acre plot in the Union territory.
Following the visit of the senior board members late last year, LV decided on Pondicherry as the location for its manufacturing base in Asia (mostly for leather products). Sources said the toss-up for the plant location was either India or Vietnam. Unlike Prada or Gucci, LV has opted for India. It is learnt that LV is working towards putting the plant on stream within this year.
“We are looking at possibilities. Nothing is confirmed yet,” said Tikka Shatrujit Singh, brand advisor, LV, when contacted by ET. Sources at Hidesign also confirmed that parleys were on with LV.
The French brand’s arrival would significantly bolster Pondicherry’s profile as a manufacturing hub in the South-East Asian context. In fact, the LV plant is expected to come up near a Rs 2,700-crore Fashion City project, which is an integrated township offering manufacturing, design, education and warehousing for the fashion business.
Air Deccan and Paramount are already looking at connecting Pondicherry, and real estate prices are beginning to pick up as the news trickles in.
Sources said LV’s move was part of a global supply chain overhaul to keep pace with market growth. Last year, LV roped in McKinsey & Co to make its manufacturing operations more flexible in responding to the needs of the expanding store network.
The move to set up a production base in India is crucial. The company largely relied on Europe, and France in particular, as customers put top dollar on the brown and gold logo bags on account of the old-fashioned craftsmanship, besides the brand power built through high-profile advertising, fashion shows and star designer Marc Jacobs.
Hidesign also has placed a similar emphasis on artisan-driven, soft, supple leather designs in building a brand that is slowly expanding outside India.
LV, founded in 1854, accounts for a significant part of LVMH’s revenues and profits. Besides its clothing line, the brand mops up a bulk of its revenues from leather accessories like handbags, wallets and suitcases.
BOBY KURIAN & AMANPREET SINGH
TIMES NEWS NETWORK
BANGALORE/NEW DELHI: Didn’t we say India rocks the world? The venerable French luxury goods giant Louis Vuitton, part of the $17-billion Moet Hennessy Louis Vuitton (LVMH) group, is setting up its first manufacturing plant in Asia at Pondicherry through a joint venture, sources said.
LV — best known for its expensive and edgy bags — has identified the Dilip Kapur-owned Hidesign, the domestic high-end leather goods brand, as its JV partner. The greenfield venture, likely to be a 50:50 JV, is expected to come up in a 30-acre plot in the Union territory.
Following the visit of the senior board members late last year, LV decided on Pondicherry as the location for its manufacturing base in Asia (mostly for leather products). Sources said the toss-up for the plant location was either India or Vietnam. Unlike Prada or Gucci, LV has opted for India. It is learnt that LV is working towards putting the plant on stream within this year.
“We are looking at possibilities. Nothing is confirmed yet,” said Tikka Shatrujit Singh, brand advisor, LV, when contacted by ET. Sources at Hidesign also confirmed that parleys were on with LV.
The French brand’s arrival would significantly bolster Pondicherry’s profile as a manufacturing hub in the South-East Asian context. In fact, the LV plant is expected to come up near a Rs 2,700-crore Fashion City project, which is an integrated township offering manufacturing, design, education and warehousing for the fashion business.
Air Deccan and Paramount are already looking at connecting Pondicherry, and real estate prices are beginning to pick up as the news trickles in.
Sources said LV’s move was part of a global supply chain overhaul to keep pace with market growth. Last year, LV roped in McKinsey & Co to make its manufacturing operations more flexible in responding to the needs of the expanding store network.
The move to set up a production base in India is crucial. The company largely relied on Europe, and France in particular, as customers put top dollar on the brown and gold logo bags on account of the old-fashioned craftsmanship, besides the brand power built through high-profile advertising, fashion shows and star designer Marc Jacobs.
Hidesign also has placed a similar emphasis on artisan-driven, soft, supple leather designs in building a brand that is slowly expanding outside India.
LV, founded in 1854, accounts for a significant part of LVMH’s revenues and profits. Besides its clothing line, the brand mops up a bulk of its revenues from leather accessories like handbags, wallets and suitcases.
so true!!
