Canali and Genesis Luxury Fashion together on the Indian market: in detail Canali, the historic Italian brand in luxury menswear, has signed a Joint Venture agreement with its franchise Indian, Genesis Luxury Fashion. The Italian company will hold 51% of the company's shares.
Although Canali had the option of setting up a branch, on the basis of the recent Government decision to allow the 100% of Foreign Direct Investments in the retail sale of mono-brand products, it was decided to opt for the setting up of a Joint Venture with an Indian company. This choice was dictated by the fact that, according to the provisions of the new law, foreign companies entering India must procure at least 30% from Indian SMEs and micro-enterprises (the term Indian SMEs means those whose investment in machinery and production units does not exceed 1 million USD): an operation of this type would not have coincided with Canali's needs, given the high quality of its products and the fact that its production takes place entirely in Italy.
At the moment, the agreement is awaiting authorization by the Government. In any case, this is a very important initiative, since Canali is the first luxury brand to invest in India after the new reform. Currently, within this market, there are already five Canali stores managed by Genesis, a franchise that operates for various international brands operating in the luxury sector. The latter are watching the evolution of the Indian market with growing interest, since the sector is growing at an average of 20% per year and it is expected that the turnover could reach 14.7 billion USD by 2015, compared to 5.8 current billion USD.
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