Fossil to sell designer watches, jewellery in India
Dec 6, 2006 - 12:11:42 AM
, Reviewed by: Priya Saxena
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The Rs. 55-billion Rajesh Exports expects to achieve $100 million in export sales through the new venture in the next fiscal year.
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By RxPG News Service,
[RxPG] Bangalore, Dec 5 - Fossil Inc, a US-based leading manufacturer of branded watches, jewellery and fashion accessories, is entering India to sell its brands through a wide distribution network and exclusive retail stores.
The $1.04-billion Texas-based firm has set up a joint venture - Fossil India Ltd - with Rajesh Exports, one of India's largest gold jewellery exporters, to manufacture its designer watches and jewellery.
The joint venture will also source precious gems, stones and metals for Fossil's global requirements.
'The 50:50 joint venture has been formed with a capital of Rs. 250 million. In the first phase, our branded watches and jewellery will be sold from about 100 OyzterBay retail outlets of Rajesh Exports and upmarket department stores,' said Mark W.M. Parker, Fossil's senior vice president.
'The manufacturing facility and sourcing of raw materials from Rajesh Exports would be taken up in the first quarter of the next fiscal after we factor the new tax structure and customs tariffs that are expected to figure in the next budget,' he added.
The Bangalore-based Rajesh Exports acquired OyzterBay, a retail chain in branded jewellery, for Rs. 110 million in March this year. OyzterBay was floated in 2000 by five promoters who were formerly with Titan.
Fossil has also acquired the brand OyzterBay from its leading co-founder Vasant Nangia for an undisclosed amount. Nangia, incidentally, will be heading the new joint venture of Fossil and Rajesh Exports.
As one of the largest suppliers of watches and fashion accessories like leather goods, handbags and sun glasses in over 90 countries, Fossil has been contracted to design, manufacture and supply to Wal-Mart under its global brand George.
Fossil caters to stores such as Marks and Spencer and House of Frazer in Britain, Chanel in the US and Jusco of Malaysia, besides retail outlets such as Neiman Marcus, Blooimingdales, Macy's, Nordstrom and J.C. Penny.
Fossil's portfolio of watch brands include Diesel, Emporio Armani, Burberry, Zodiac, Adidas and Michele.
'We believe in the future potential of India both as a market and a hub for international sourcing. As jewellery is a focus area for the growth of Fossil worldwide, we are looking to India as a globally competitive source for our needs,' Parker said.
Rajesh Exports chairman Rajesh Mehta said the new venture will tap the private label branded jewellery segment where high net worth individuals and the elite would be sold specially designed and customised products at competitive rates.
The venture will select the products and brands from Fossil portfolio for designing and retailing and work with Rajesh Exports design team to make jewellery for the global market.
The Rs. 55-billion Rajesh Exports expects to achieve $100 million in export sales through the new venture in the next fiscal year.
The global jewellery market is estimated at $90 billion and its market size in the sub-continent is projected at $11 billion. The global watch market is pegged at $10 billion, while its market size in India is about $550 million.
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