The Hindu Business Line : Indian-owned firm buys German’s Wehmeyer

New Delhi, Nov. 28 Indian entrepreneur-promoted apparel sourcing company Techno Life style has acquired mid-market German retailer Wehmeyer for an undisclosed amount.

Wehmeyer has a consolidated turnover of Rs 900 crore and 43 retail stores across Germany.

It sells apparel and accessories for men and women from leading brands such as Esprit, S Oliver and Lerros besides having a portfolio of its own brands.

A sister concern of Germany’s erstwhile leaders in the apparel space, Karstadt (whose parent Arcandor owns travel group Thomas Cook), Wehmeyer acquisition by Techno Group’s Mr Rajiv Ranjan is being seen to increase its brand presence in India. Headquartered in Germany, Techno Group employs about 60 people engaged in the sourcing and supply of apparel to many leading retailers in Europe and the US, including Walmart, Metro and Kaufhof with ‘private label’ as its mainstay.

“The acquisition for us is a means for forward integration. We have been sourcing out of Asia for other retailers. However, this will help us in establishing a foothold in the retail industry besides cutting out on middlemen,” Mr Rajive Ranjan, Managing Director Techno Group, told Business Line.

Investment

Techno Group will be investing €15 million in expanding Wehmeyer’s footprints across Germany and improving operational efficiencies.

He said the acquisition has given the company a total of a million square feet of retail space in Germany.

“We hope to break even in the first year of our operation itself,” he said, adding that the company will considerably increase its sourcing from the Indian subcontinent.

Techno Group currently sources fabric and accessories from Asian countries which include China, Bangladesh, India, Vietnam and Sri Lanka.

“We will be sourcing directly from the factories in India as it will help in promoting private labels in our outlets,” Mr Ranjan said. Techno group is also mulling to bring the brand in India by 2010.

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