Page 81 - IACC Newsletter August-September 2013 Issue 13

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Kentucky based Yum Brands to combine KFC, Pizza Hut but keep them separate in
India
Yum Brands Inc., which is investing heavily in India, has said that it will keep its China and India units separate as part of a
strategic reorganization
Yum Brands Inc. said it would combine the US and international divisions of KFC, Pizza Hut and Taco Bell and keep its China
and India units separate as part of a reorganization. The reorganization will be effective from January 1 and beginning
fiscal year 2014, the company will report results for KFC, Pizza Hut and Taco Bell and for its China and India divisions.
"We believe that having 100 per cent focused brand teams will enable us to more aggressively accelerate growth," Chief
Executive David Novak said. The China and India units will remain separate given their "strategic importance and
enormous growth potential", the company said.
Yum is the biggest US restaurant operator in China and that market traditionally accounts for more than half of the
company's operating profit. But sales at restaurants in China have taken a beating since chemical residues were found in
chicken from some of its poultry suppliers in China late last year. The company has also been investing heavily in India.
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US’s apparel retailer Children’s Place may partner Arvind for an India entry
Arvind Brands, a subsidiary of the Mumbai-listed Arvind, has been adding international fashion names to its portfolio — the most
recent being Debenhams, Nautica and Next.
Children's Place, the largest children's apparel retailer in the US, may partner Arvind for an India entry next year. The $2-
billion retail chain's discussions with Sanjay Lalbhai spearheaded Arvind are fairly advanced as the brand looks to expand
outside its core North American markets, people familiar with the matter said. Both companies would soon decide
whether the partnership will involve an equity joint venture or a licensing and distribution deal, sources familiar with the
matter told media.
Arvind Brands, a subsidiary of the Mumbai-listed Arvind, has been adding international fashion names to its portfolio —
the most recent being Debenhams, Nautica and Next. It is close to announcing a joint venture with Japanese retail major
Uniqlo early next year and has held exploratory talks with US mega apparel retailer Gap.
Swedish fast fashion retailer Hennes & Mauritz and Uniqlo are the two most anticipated brands slated to enter the
country over the next year or two after the Indian government liberalized foreign investment rules for single-brand
retailers, opening it up 100 per cent. The Nasdaq-listed Children's Place has more than 1,100 stores globally and will
compete with a string of domestic players in India, including Gini & Jony, Catmoss and Lilliput as well as the likes of
Benetton Kids, Tommy Hilfiger Kids, Zara Kids and Mothercare.
An email sent to Children's Place remained unanswered till going to press on Monday while J Suresh, CEO, Arvind Brands,
declined to offer any comments on the story. Arvind is present in the fast-growing kidswear category through its private
label Cherokee Junior as well as Elle Kids. It also plans to launch Nautica Kids going forward.
The Indian domestic apparel market is dominated by menswear which contributes as much as 43 per cent to the overall
sales. However, kidswear is growing faster than the men's segment, estimates by retail consultancy firm Technopak said.
The kidswear market in India stands at about Rs 37,000 crore and is projected to grow at 10 per cent annually. Many of
the international brands have diversified their lines into children's wear to tap into this growing demand.
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