DLF setting up JV Company with Italian major Piquadro

Real estate developer DLF is learnt to be setting up a joint venture company with Italian leather and luggage accessory major Piquadro to hawk its products in India. This is part of the real estate major’s retail strategy to bring in some of the world’s leading premium brands across categories into the country.
At present, DLF is in the process of hiring people to drive the brand Piquadro in its portfolio. DLF spokesperson denied the development, saying the two companies were not in talks for any tie up. DLF has also entered into similar agreements with Italian brands Armani and D&G. Armani holds 51 percent in the joint venture. DLF is also setting up a joint venture with Italian luxury apparel and footwear brand Ferragamo.
The exact stake of the two parties in the proposed DLF-Piquadro JV couldn’t be ascertained. Indian FDI regulation allows 51 percent foreign ownership in a single-brand retail venture. Piquadro may open its first store in the DLF’s planned luxury mall in Delhi. The 20 years old Italian manufacturer and distributor of business bag and luggage have of late been focusing on expanding beyond its shores.
In its December board meeting, the company approved the setting up of a joint venture company in India, which will open new stores. Piquadro also plans to set up two separate companies in China and Abu Dhabi to drive business in those markets. The company already sells in 50 countries, but Italy accounts for almost 80 percent of its sales.
Piquadro, which is listed on the Milan Stock Exchange, reported a consolidated net profit of $6.2 million and turnover of $48.1 million for the nine month period ended December 2007.