Tuesday, January 15, 2008

House Of Pearl To Acquire Simple Approach Limited - In Hong Kong

House of Pearl Fashions Ltd has announced that the Company has signed a Memorandum of Understanding (MOU) to acquire 75% stake in the Hong Kong-based marketing Company, Simple Approach Ltd.

The Company has been working at strengthening its distribution muscle in the overseas markets.

The acquisition will benefit the Company in expanding its customer base into high fashion mid market segment. Simple Approach is supplying to value and mid market retailers in the UK and the USA and will be clocking revenues of Rs 80 crores in the current financial year, which are expected to grow to Rs 100 crores in the FY 2008-09 and projected to grow to Rs 200 Crores by FY 2010-11.

This Company has an excellent customers base and very good design team. By leveraging the Companys sourcing capabilities it will be offer wider product ranges at very competitive prices and can easily achieve 25% annual growth in its business every year for next 3 years.

The Company is the only Company in this sector with presence in more than 10 countries and controls complete supply chain from design & development to delivery to the customers doorsteps.

The Company is looking at entering fashion retailing in India with plans of launching a German Brand Lerros.

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