US fashion retailer Gap has announced its plans to enter India through a tieup with Arvind Lifestyle Brands, a subsidiary of denim maker Arvind Ltd, and plans to open 40 stores across the country over five years.
The first stores will be opened in Mumbai and Delhi beginning around May 2015, and there is an opportunity to open 8,000-10,000 square feet stores in 15-20 towns, Suresh J, MD and CEO of Arvind Lifestyle said on Friday. The capital expenditure for each store will be around Rs10 crore.
Arvind already supplies denim to Gap, and following this agreement, will now be responsible for launching and expanding Gap retail stores across India.
Arvind is amongst the largest fashion retailer in India with around 1,130 outlets. It already has tieups with several global brands like Nautica, US Polo Association, Arrow, among others and a joint venture with Tommy Hilfiger. It also sells several of its own private brands and has license to open Debenhams and Next outlets in India.
Apparel market in India is currently estimated at around $40 billion and is projected to grow to $60 billion by 2020. Organised retail and brands currently account for $12 billion, according to Arvind officials.
“We are continuously looking at opportunities to strengthen our position in the marketplace. We see the addition of Gap in our portfolio as a significant step to becoming the leading apparel retailer in India,” said Sanjay Lalbhai, chairman and managing director of Arvind.
Gap said India represented an important platform to bring its American casual style of fashion here. “India is an emerging, vibrant market and an important next step in our global expansion strategy,” said Steve Sunnucks, global president of Gap.
Arvind will also be responsible for Gap’s e-commerce drive.
Arvind also plans to launch a multi-brand e-commerce platform in the future and has made an initial outlay of `20 crore for the same, its executive director Kulin Lalbhai said.