rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Luis Vuitton's $560-700 mn plans for India

Luis Vuitton's $560-700 mn plans for India

September 21, 2007 03:35 IST

French luxury goods giant Louis Vuitton Moet Hennessy (LVMH) is planning to make private equity investments of ¤400-500 million ($560-700 million/Rs 2,230-2,790 crore) in Indian retail chains and brands, jewellers, ayurveda, designers and spas.

LVMH, which has brands like Christian Dior, Fendi, TAG Heuer and Dom Perignon in its stable, is planning to float a ¤1 billion private equity fund for emerging markets in Asia, of which 40-50 per cent will be dedicated to India.

"We are looking to invest in retail and brands of Indian origin," said Ravi Thakran, group president of LVMH's operations in South, South-east and West Asia. The fund will be launched within 12 months by L Capital, which is controlled by LVMH. Thakran said that while the fund might not necessarily invest in brands classified as luxury, these should have the potential to become one.

LVMH's holding company -- Group Arnault -- will also make investments in Indian real estate.

Sources in the industry said Group Arnault was in talks with DLF and Bombay Dyeing for two such destinations in Mumbai.

"The idea is to create luxury destinations in the country. It would be a mix of retail and entertainment such as hotels or spas," said Thakran.

Nayantara Rai in New Delhi
Source: