Denim major Pepe Jeans has decided to foray into innerwear in India and formed an equal joint venture company with the hosiery player Dollar Industries.
Dollar Industries will invest Rs 36 crore as 50 per cent equity in Pepe Jeans Innerwear Pvt Ltd and same amount will be by Pepe Jeans Europe BV as FDI to manufacture and market premium range fashion innerwear, loungewear, gymwear, sleepwear and track suits for adults and kids, Dollar Industries managing director Vinod Kr Gupta said.
The investment will be Rs 200 crore over the next four to five years, he said.
"Pepe Jeans expansion into newer categories is a strategic progression of the brand. We had been successful in launching kids wear two year back," Pepe Jeans managing director Kavindra Mishra said.
The SPV will be marketing products in India, Sri Lanka, Nepal, Bhutan and Bangladesh.
Gupta said as per business projections the company will attain Rs 600 crore topline on its 10th year of operation.
Mishra said their innerwear will be made available in the market by February and March 2018.
The SPV will leverage Pepe Jean's 217 exclusive stores and about 1000 multi-brand stores across India beside strong Dollar distribution network.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)