LVMH Watches & Jewellery, one of world's leading luxury groups, is exploring the possibility of making India a sourcing hub for its watch components.
At present, LVMH Watches sources only a few of its components out of Switzerland. And the value of the sourced components do not exceed 1-2 per cent of the value of the watch.
The company is evaluating the option of sourcing some of its components from the country, since India is a low-cost manufacturing base. The value of the outsources components from India will be more than two per cent of the value of the watch.
Shantanu Mukherji, area manager South Asia of LVMH Watches & Jewellery said, "We are actively looking at sourcing some of the components from India, in the next few years."
The search for sourcing components from a low-cost base was not just restricted to India. China is the other strong contender.
Mukherji clarified that even if the company decides to source some of its components from countries other than Switzerland, LVMH would not compromise on the "Made in Swiss" label.
The value of the watches from the LVMH portfolio, currently available in India, are priced between Rs 21,000 and Rs 115,000.
Mukherji said, sales in India were increasing rapidly. "In the last three years our sales increased by 240 per cent globally and the base being small, the growth in India has been more," he said.
At present, India and China were the fastest growing markets for the company. In volume terms Middle East, Taiwan and France are the bigger markets for LVMH.
The group is also likely to bring Dior fashion in India. "Within the next six months to one year, Dior fashion should be in the country," Mukherji said.
The group had recently launched the Dior Girly watches, priced between Rs 35,000 and Rs 44,000.
Christian Dior watches are a part of LVMH Watches and Jewellery. Dior watches are distributed in over 150 countries at 1,500 selected sales outlets and 115 Christian Dior boutiques. In India, Dior watches are available at 31 retail points across 13 cities.
