Joint venture between Ermenegildo Zegna Group and Reliance Brands Ltd

Online, September 17, 2010 (Newswire.com) - Mumbai, September 16, 2010 - Ermenegildo Zegna Group, the world leader in luxury menswear, and Reliance Brands Ltd, a part of the Reliance Group has set up a joint venture to develop the Zegna brand in India.

The joint venture aims to ramp up the operations creating a national footprint to capture the potential of the Indian luxury market. In the five-year period 2010-2015, this will mean more than ten stores across six to seven cites, starting with the single-brand boutique to be opened in Hyderabad in October 2010. At the end of 2015 India could potentially be the largest market in South and South East Asia for Ermenegildo Zegna driven by strong growth.

The Mumbai-based company, Zegna South Asia Private Ltd operational since 2006, will be reorganized as a Joint Venture between Ermenegildo Zegna Group (51%) and Reliance Brands Ltd. (49%).

Ermenegildo Zegna Group has been active in India since 2003 and was one of the first global luxury brands to get FDI approval for mono-brand retail following liberalization by the Indian Government. The first directly managed store was opened in Mumbai in 2007, followed in mid-2008 by openings in Bangalore and New Delhi. The Indian operation has seen significant double digit growth since inception.

"Strategically India is one of the markets with the highest growth potential and we are used to being the frontrunners in emerging new markets, as is shown by our 100-year history. Our consolidated experience in retailing luxury clothing, rooted in an industrial tradition based on the twin strategies of quality and innovation, coupled with Reliance Brand's presence in and in-depth knowledge of the Indian market are the best guarantees for the success of this joint venture in building a long-term relationship with India's sophisticated consumer base" " said Ermenegildo Zegna, CEO of the eponymous Group,

"Zegna is one of the most coveted brands in men's luxury, and it is a matter of prestige and excitement for Reliance to partner with them in India. Given the rising aspirations and influence of western luxury on the Indian consumer, this partnership is well timed. All the more so, since it comes in the Centennial year of Zegna's launch", said Darshan Mehta, President and CEO of Reliance Brands.

Ermenegildo Zegna Group
The Ermenegildo Zegna Group is the world leader in luxury men's clothing and one of Italy's most famous family driven enterprises. Founded in 1910 in Trivero, in the Biella Alps, by the young entrepreneur Ermenegildo, whose vision was to ethically create the world's finest textiles through innovation, sourcing the noblest fibres directly from their markets of origin.

Managed today by the fourth generation of the Zegna family, the company this year celebrates its Centennial. Since the end of the 90's the company has accomplished a comprehensive strategy of verticalisation, creating a Global Luxury Brand which now ranges from fabric to clothing to accessories - and focused on retailing, pioneering early entry in emerging luxury markets, BRIC and Asia in particular, and was the first luxury brand to open a monobrand store in China in 1991.

Worldwide there are 555 Ermenegildo Zegna points of sale in 86 countries, of which over 300 are direct operating stores. In 2009 the Ermenegildo Zegna Group, posted sales of around 800 million euros.

Reliance Brands Limited
Reliance Brands Limited is a part of Reliance Group. The company began operations in October 2007 with a mandate to launch and build international and domestic brand equity in the premium to luxury segment across apparel, footwear and lifestyle businesses.

Reliance Industries Limited
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with a turnover of Rs. 2,00,400 crore (US$ 44.6 billion), cash profit of Rs. 27,933 crore (US$ 6.2 billion), net profit of Rs. 16,236 crore (US$ 3.6 billion) and net worth of Rs. 1,37,171 crore (US$ 30.6 billion) as of March 31, 2010.

RIL is the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 117th amongst the world's Top 200 companies in terms of profits. RIL ranks 75th in the Financial Times FT Global 500 list of the world's largest companies. RIL is rated as the 15th 'Most Innovative Company' in the world in a survey conducted by the US financial publication - Business Week in collaboration with the Boston Consulting Group.