Shoppers? delight

Mumbai, Feb. 4: In a strategic joint venture agreement, Pantaloon Retail (India) Ltd will pick up a 49 per cent stake in Planet Sports for over Rs 14 crore.

Planet Sports, a leading sports and fashion retail company, is the sole franchisee of the UK-based Marks and Spencer. It also has exclusive distribution and licensing rights for brands like Wilson, Puma, Speedo and Converse. There are six Marks and Spencer and 25 Planet Sports stores in the country.

V. P. Sharma, an NRI based in Indonesia and head of Planet Sports, said the agreement would benefit both the companies and bring a new momentum in the retail industry.

Sources said the turnover of Planet Sports, at around Rs 35 crore, is expected to increase to over Rs 105 crore in the next couple of years.

The agreement would enable Pantaloon to introduce more lifestyle brands through its distribution network.

Pantaloon managing director Kishore Biyani said, ?The strategic alliance is going to change the face of branded lifestyle retailing in India. Our access to Sharma?s retail expertise, as witnessed in Southeast Asia, will create a landmark in the already booming retail sector.?

Pantaloon owns retail chains of Pantaloons, Big Bazaar, Food Bazaar and Gold Bazaar. It also has the Central chain of seamless shopping malls. Last month, Pantaloon announced the acquisition of the Bangalore-based Indus League Clothing, which has brands like Scullers and Indigo Nation in its fold.

Pantaloon will acquire 68.29 per cent in the company from ICICI Venture Funds Management, in lieu of which the latter will get preference shares of the retail company.

Pantaloon manufactures and markets blended yarn fabrics for suiting and trousers under the brand name, Pantaloons Expression.