K K Birla group is poised to sever its seven-year long association with Gautier, the French furniture brand having presence in Europe and the US, from October.
K K Birla group, which enjoys the right to use the Gautier brand in the country through Zuari Industries Ltd, has decided not to renew the agreement with the French firm which will expire in September.
A source in the K K Birla group said that Gautier would be replaced by a new brand which might be either an indigenous one or a foreign brand. The decision to end the relationship follows the move by Zuari Industries to spin off its furniture business, run by Indian Furniture Products Ltd, into a separate company.
The Birla group introduced ready-to-assemble furniture of contemporary European design in collaboration with Groupe Seribo of France through IFPL, a division of Zuari Industries, in 1997. IFPL is located at Kakkalur near Chennai.
IFPL would have two brands in the basket, as it has currently, even if the agreement with Gautier ended.
The new partner will cater to the premium segment, while the economy market will be served by the Zuari brand.
"It is not decided whether IFPL will develop a new brand or get a foreign one. An agency has been appointed to guide the company in the matter, but it is certain that the company will have two brands," they added.
IFPL, after the spin-off, might induct an equity partner as well. "The company is open to the induction of a partner but IFPL will continue to be a subsidiary of the group. In other words, the group will not dilute over 49 per cent stake in IFPL to a partner," they added.
Zuari Industries is also in the process of bringing Zuari Leasing & Finance Corporation Ltd, a finance subsidiary, under the company.
© 2025