American apparel retailer Gap has outlined plans to expand its business in Indian market through a joint venture (JV), in a move to increase the brand network.
The San Francisco-based clothing retailer has already signed a letter of intent with Arvind Brands for the JV.
This latest development from the apparel brand came after the Indian government opened retail business to foreign players in both single-brand and multi-brand sectors, reports The Economic Times.
The news agency also claimed that Arvind and Gap has a consistent partnership, with latter buying denims from Arvind for a few years now.
Gap’s counterpart, Hennes & Mauritz recently secured approval from the Foreign Investment Promotion Board, earlier in November 2013, reported The Economic Times.
Arvind Brands, meanwhile, is also working separately with US-based lifestyle brand Tommy Hilfiger to unveil around 500 retail stores over the next five years, through an equal joint venture. Calvin Klein and Lee are the other brands which Arvind retails in the Indian market.
Gap is a specialty retailer of fashion apparel and accessories based in the US. The company offers apparel, personal care products and accessories for men, women and kids. All the products are sold through established and private label brands that include Gap, Old Navy and Banana Republic.
As of February 2013, the company operated 3,407 stores including 312 franchisee stores under the banners of Gap, Banana Republic, Athleta, Old Navy, Intermix and Piperlime.
The company’s stores are located in the US, the UK, Canada, Ireland, France, Japan, China and Italy. It also operates Gap and Banana Republic stores through franchise agreements in 40 countries.