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Bangalore, June 12 Arvind Mills says its joint venture with Diesel was restricting its growth plan to build a large portfolio of brands in the country, which prompted it to call off the joint venture with the Italian denim and casual wear brand.

Mr J. Suresh, CEO – Brands and Retail, Arvind Mills, said, “Both Arvind and Diesel have different growth plans in India. We felt the joint venture would restrict our growth plan, which is to build a portfolio of brands.”

Although there was no clause in the joint venture, there was an “inherent indication” that Arvind could not deal with competing brands, said Mr Suresh.

“Our growth strategy is to build a portfolio of brands in various categories such as formal wear, sportswear and denim wear. We want the number one position in the men’s premium wear segment. Arvind may also bring in a premium denim wear brand in future. When we told them our plans, Diesel was not okay with it.”

Currently, Arvind has a portfolio of several brands such as Arrow, Ruf ‘n Tuf, Gant and Flying Machine and some yet-to-be-launched brands.

The company has an exclusive international licence agreement with Cherokee Inc to retail the Cherokee brand in India through Megamart (Arvind’s chain of value retail stores). It also has a licensing agreement with The Hartmarx Corporation to design, distribute and retail men’s apparel brands Hart Schaffner Marx, Pierre Cardin and Sansabelt.

“We are looking at a combination of independent stores, departmental stores and own multi-brand stores to retail these brands,” said Mr Suresh.

The company had on Wednesday informed the BSE that the 51:49 joint venture (with majority stake with Diesel) between Diesel BV and Arvind Ltd for distribution and branding of Diesel products in India has been called off from June 11 by mutual consent.

The joint venture ‘Diesel Fashion India Arvind Pvt Ltd’ agreement was signed on April 20, 2007.

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