Poltrona Frau Group and TATA announce the signature of a Joint Venture Agreement for Indian market
A significant partnership for the development of business in India
Milan, 27th September 2007 – Poltrona Frau Group and TATA Sons Limited (through its subsidiary Ewart Investments Limited) announce the signature of a Joint Venture Agreement for the creation of an equal partnership also related to industrial activity, that will act as the exclusive vehicle in India for the development of the Poltrona Frau Group brands. The Joint Venture will pursue the introduction and development of high-end design furniture all over India.
Poltrona Frau Group is an international leader in the high-end sector of the furniture market with four renowned brands, Poltrona Frau, Cassina, Cappellini and Alias, and other important brands such as Gebrüder Thonet Vienna, Gufram and Nemo.
TATA group is one of India's largest and most respected business conglomerates, with revenues in 2006-07 of 28.8 billion USD and a market capitalisation of 60.5 billion USD (as on September 20, 2007). The group has 28 publicly listed enterprises - among them stand out names such as Tata Steel, Tata Consultancy Services and Tata Motors - and has operations in more than 85 countries.
The Joint Venture will cover two main areas:
(1) The partners have shared their intention for selling Poltrona Frau Group products in Mumbai and in Delhi in primary locations that will provide adequate visibility to the various Group brands, with the goal to improve the direct relationships with both the final clients and the most influential interior designers and architects (as a key activity to improve the knowledge and awareness of design furniture in India);
(2) With the key support of TATA Sons, the Joint Venture shall maximise opportunities to participate in real estate development initiatives in India with the exclusive products created by the world leader in luxury furniture. This activity will cover projects in: (i) public spaces (as new constructions and/or current restructurings of hotels, multiplexes, theatres and auditoriums, airports - and in particular their VIP lounges), (ii) private housing and corporate and public offices in various sectors, and (iii) seating business (among others, for first and business classes of airlines and the interiors of private jets).
In addition, alongside the scope of the Joint Venture Agreement, Poltrona Frau has also agreed to make available its own strategic skills, expertise and resources for the purposes of setting up a new facility for a high quality leather processing, which will be located in the existing complex of TATA International Limited, in India. This is with the goal to provide Poltrona Frau Group with a high quality source for leather procurement at competitive terms.
The partners already started their cooperation on the association of Poltrona Frau and Cassina brands to one of the five stars hotels in India owned by the Indian Hotels Company Limited, owners of the Taj Group of Hotels, which is a TATA company.
The joint venture will commence the operations after receipt of all the regulatory approvals, if any, from the Governmental Authorities in India.
“After the important joint venture established with Mubadala in the United Arab Emirates, it is one of Charme’s priorities to support the international development of its portfolio companies in association with worldwide leading groups ” declares Luca di Montezemolo, Chairman of Charme Group. “Consistently, this important agreement with TATA is fully in line with such priority and has been inspired with the goal to create the highest value for our shareholders”.
“It is with the greatest satisfaction that we announce the establishment of this second venture in Asia” adds Giuliano Mosconi, CEO of Poltrona Frau Group, “India represent one of the top priority markets for the Group and this Joint Venture has been established with the most important partner on that market, that will bring very important support to the key project that we have defined together”.
“We are pleased to have entered into a partnership with the Poltrona Frau Group. Through this joint venture we intend to bring high end design and quality products from Italy to India” concludes Ratan Tata, Chairman of Tata Sons.