International fashion brand Pepe Jeans Europe BV on Friday announced entering the premium innerwear market in India in a 50:50 joint venture with the country-based hosiery major Dollar Industries with an investment of Rs 200 crore over the next five years.
"The joint venture company named Pepe Jeans Inner Fashion Pvt Ltd would manufacture and market premium range of fashion innerwear, loungewear, gymwear, sleepwear for adults and kids in Indian under the brand name of Pepe Jeans London," Pepe Jeans India Managing Director Kavindra Misra told reporters here.
He said the product would be available in the Indian market in Feburary-March next year and also be available in four other neighbouring Asian countries - Bangladesh, Nepal, Bhutan and Sri Lanka.
Stating that the joint venture aims to capitalise on the immense growth potential in the premium innerwear market, Misra said this strategic investment would take both the brands to greater heights.
"The joint venture company is expected to clock Rs 600 crore revenue by the 10th year of the operation," he said.
Mentioning that Pepe has a small segment of innerwear products in the European courtries, Misra said launching such products in this part of the world is part of their expansion plan after significant success in the kids wear segment last year.
"The premium innerwear products launched by the company would be primarily for men," he added.
Hailing the partnership, Dollar Industries Ltd Managing Director Vinod Kumar Gupta said introduction to the premium innerwear segment would help his company increase the market share and achieve the goal of Rs 2,000 crore revenue by 2024.
"The market size for the innerwear in India is close to Rs 8,000 crore in the organised sector. 25 percent of that market is for premium products. It shows that there would be a huge potential for growth for the joint venture. We would look to fashion and functionality in our products and offer it to the customer," Gupta said.