Gap Inc. (San Francisco) is reportedly in discussions with Arvind Ltd. (Ahmadabad, India) about forming a joint venture in the Asian sub-continent.
According to the Economic Times of India, Gap recently moved company veteran Rajiv Malik to India as general manager of sourcing. Malik said at the time that Gap was exploring various possibilities, including a fully owned subsidiary and a joint venture.
Arvind, formerly Arvind Mills, manufactures apparel and markets various American labels – such as Tommy Hilfiger, Calvin Klein and Lee – in India. Gap has been buying denim from Arvind or several years.
It's not clear what stake Gap will hold in the proposed joint venture.
Gap would be trying to cut the competitive disadvantage it currently has in one of the world’s biggest markets. Earlier this month, H&M Hennes & Mauritz AB (Stockholm) received approval from India’s Foreign Investment Promotion Board to form a wholly owned subsidiary that will run H&M’s stores there. Zara has been in the market in 2010.