Rupa & FCUK Tie Up Pushes Rupa Share Prices Up By 20%

April 13, 2016 written by
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Rupa & Company has recently recorded a 20 per cent high on the BSE after its share prices reached a peak value of Rs. 329.40 on Monday, just after the share market opened. This happened just after the company made it official that its subsidiary Oban Fashion Private Limited has recently acquired an exclusive manufacturing licence from French Connection Limited. Not only will they manufacture, but they will market the innerwear and related products with the brand name ‘FCUK’ in India.

“This is a franchisee agreement with FCUK, London. We will pay the parent company a royalty percentage of Net Sales. There is a five year strategy that Rupa has made for FCUK. The strategy revolves around increasing retail penetration and increasing the product portfolio while maintaining the brand image of FCUK,” informed Siddhant Agarwal, Director, Oban Fashion Private Limited.

While Nifty was down by 0.16 per cent and the market was dull, Rupa & Company registered a 20 per cent high and outperformed the other related companies in the same category. Lovable Lingerie and Page Industries too surged up by 6.15 per cent and 0.6 per cent respectively too. But Rupa’s lead was a performance in itself in this otherwise dull scenario.

In the initial years this tie up will be a marginal contributor to the Rs 1000 crore revenue of Rupa. However, by FY21, Rupa is expecting this to be a significant portion of the total revenue. Responsible for manufacturing, marketing and distribution of FCUK  inner wear, sleepwear and socks in India. The company has entered into a definitive agreement with FCUK for 10 years and will expand the product portfolio for FCUK.

“This step of tying up with FCUK was aimed to fill the gap in the super premium segment. We have been looking at brand licensing for a year now.  Brand licensing is an opportunity we see at Rupa. We would like to do tie-ups where we see a gap in our product offering,” adds  Siddhant Agarwal.

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