The famed French luxury goods maker Louis Vuitton, part of the $17-billion Moet Hennessy Louis Vuitton (LVMH) group, is all set to build its first manufacturing plant in Asia at Pondicherry through a joint venture. Besides its clothing line, the brand mops up a bulk of its revenues from leather accessories like handbags, wallets and suitcases. Best known for its expensive and edgy bags, Louis Vuitton has recognized the Dilip Kapur owned Hidesign, the domestic high-end leather goods brand, as its JV partner. The 50:50 JV is expected to come up in a 30-acre plot in the Union territory. The toss-up for the plant location was either India or Vietnam. But unlike Prada or Gucci, LV has opted for India, Pondicherry.
The French brand’s arrival would significantly augment Pondicherry’s profile as a manufacturing hub in the South-East Asian context. In fact, the LV plant is expected to come up near a Rs 2,700-crore Fashion City project, which is an integrated township offering manufacturing, design, education and warehousing for the fashion business. Airlines companies like Air Deccan and Paramount are already looking at connecting Pondicherry, and real estate prices are beginning to pick up as the news trickles in. Sources said LV’s move was part of a global supply chain overhaul to keep pace with market growth.
Via – Economic Times