NEW YORK, Feb. 22, 2012 /PRNewswire/ -- Iconix Brand Group, Inc. (NASDAQ: ICON) and Reliance Brands Limited, a part of the Reliance Industries Group, the largest private sector company in India, today announced the formation of a joint venture company in India. The partnership marks the next step in a global expansion strategy for Iconix, which currently has other similar partnerships in Greater China, Europe and Latin America.
The new joint venture will own the fashion and home brands from the Iconix portfolio for the Indian territory, which includes iconic brands such as Ed Hardy, Mossimo, London Fog and Ocean Pacific. The new joint venture, which will be based in Mumbai, will follow a similar business model to that of Iconix in North America, which focuses on growing royalty revenue through existing and new licensing agreements with both manufacturers and retailers, while providing marketing and brand management services. Existing Iconix business in India with brands such as Mossimo and Ed Hardy will also be rolled into the partnership.
"Partnering with Reliance, a company that has a dominant presence in India, one of the most compelling retail growth areas in the world, is an essential next step in our global expansion strategy," said Neil Cole, Chairman and CEO of Iconix Brand Group. "With this new partnership in place, and together with our existing global partnerships in other regions, we are on our way to achieving our long term goal of growing international revenue to a third of our total business."
"Iconix has a very unique and interesting business and revenue model as well as an exciting portfolio of brands. Having the ability to leverage the global strength of the Iconix portfolio of brands, and building a larger presence for them here in India, is an incredible proposition," said Darshan Mehta, CEO of Reliance Brands Limited. "This fits very well into Reliance Brands' vision of creating long term value through multiple models of partnerships in the fashion and retail business."The new partnership is subject to regulatory approval.