To boost its high-margin private brands business, online fashion retailer Myntra is close to buying a majority stake in HRX, a clothing and shoes brand launched by actor Hrithik Roshan, from Exceed Entertainment. The financial details of deal are still undisclosed by Myntra, but it will finish the transaction over the next few weeks, reported LiveMint.

Launched in late 2013, HRX is a sports and lifestyle brand that is sold on Myntra and Flipkart, will bring in sales of Rs.300 crore this financial year, up from Rs.100 crore last year.

Post deal, HRX will become part of Myntra’s growing portfolio of private brands. The company, which is owned by Flipkart, now owns 12 private brands, including HRX. Its largest private brand is Roadster, a casualwear offering.

“This deal will add an attractive sportswear and lifestyle brand in our private brands collection. Indians are looking to become healthier, more active and want more choice. Leaving aside a few international sports brands, there’s a lack of choice for consumers in sportswear and lifestyle and there’s massive scope to build a large brand in this segment. Buying an equity stake in HRX will align our vision with HRX’s over the long term,” said Rajesh Narkar, vice-president, Myntra Fashion Brands.

Myntra expects private brands to contribute up to 30% of its sales by March 2017, from about 20% at the beginning of the financial year. The company is targeting gross sales (net of discounts but before product returns) of Rs.5,000 crore this year. For HRX, selling a large stake to Myntra will mean getting access to analytics, data on customer preferences and more marketing power.

HRX plans to expand to offline stores in India this year and it is in talks to open exclusive outlets. HRX will also expand to countries in West Asia sometime this year to boost its presence. “We’ve built a strong brand in sports and lifestyle in less than three years. With Myntra’s strength in analytics, data and the online channel and our product vision and strength in building brands, HRX will become a massive brand over the next 3-5 years. With this deal, our strategy and brand vision is completely aligned with Myntra’s,” said Kamal Punwani, chief financial officer at Exceed Entertainment, which owns the rights to HRX along with Roshan.

Post a Comment

Previous Post Next Post
Like this content? Sign up for our daily newsletter to get latest updates.