Tata group firm Titan on Thursday said it will end its five-year joint venture with luxury firm Montblanc in December this year, to focus on its primary business and proprietary brands. Titan holds a 49 percent equity stake in the joint venture (JV) -Montblanc India Retail Private Limited.
Titan entered into the JV with Montblanc Services BV, the Netherlands, for the operation of retail boutiques in India for Montblanc products. "By mutual agreement, Montblanc and Titan Company Ltd, a consumer retail company within the Tata Group, announced today the ending of their joint venture partnership in India. The decision enables Montblanc to become a wholly owned subsidiary in the country," Titan said in a regulatory filing.
Titan said its decision to exit the joint venture agreement was driven by the company's consolidation strategy to focus on their primary business and proprietary brands. No financial details were disclosed. During the five-year partnership which began in 2015, Montblanc opened 12 boutiques in major cities across the country and established a fast-growing e-commerce business through the luxury online portal TataCliq.
Today Montblanc is a leading global luxury Maison with the largest footprint in the country, Titan added. Commenting on the next stage of the business in India, Nicolas Baretzki, CEO of Montblanc International, said: "This is a market that holds strong long-term potential for Montblanc, and it is a mark of confidence that we now become a wholly owned subsidiary."
C K Venkataraman, Managing Director of Titan Company Ltd said: We have decided that during these rather challenging times our primary business must take precedence. Both parties have greatly benefited from this partnership, and our relationship with Montblanc remains strong and positive. In accordance with the joint venture agreement, the partnership will end in December 2020, Titan said.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today