How did the MNC managed their Indian operations during the Covid?

June 20, 2022 written by

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Many MNCs has shut their India operations and handed over their businesses to their local distributors to cut cost during covid. A host of global brands had to change their partners even during the covid times.

Read below to see how MNCs


and other global brands survived the Pandemic times.

US sportswear giant Under Armour is planning to appoint a local distributor to manage its India operations, instead of continuing with a fully owned subsidiary in the country, two people familiar with the matter said. The development comes barely two years after the Baltimore-based company setting up its fully owned unit in India.

One of the people said the company is considering handing over the local distribution rights to a team led by TusharGoculdas, the current Managing Director of Under Armour India.
Under Armour made its India debut with an exclusive online deal with Amazon in 2017. Subsequently, in 2019, the world’s third-largest sportswear company after Nike and Adidas set up its wholly-owned India cash-and-carry business – where the country allows 100% overseas ownership. The company also appointed several local franchisees to operate Under Armour-branded outlets.

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Franchisees currently operate 20 Under Armour outlets in the National Capital Region, Bengaluru, Chennai, Ahmedabad, Hyderabad, Lucknow and Chandigarh, among other cities.
Two US denim labels, Lee and Wrangler, had earlier this year decided to shut their fully owned India subsidiary. They have appointed Bengaluru-based omnichannel enabler Ace Turtle as the local distributor and master franchisee for the country. Ace Turtle is now planning to transform the Lee and Wrangler India businesses into omnichannel entities to drive growth and aims to double its sales here over the next two years by extensively focusing on online channels.

Companies are taking such steps as they are grappling with Covid-induced issues in their home markets, analysts said. Brands are exiting their subsidiaries in India to save money and to focus on or to rebuild in their bread-and-butter home markets, they said.

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The pandemic has also led to a change in India’s partnerships with a host of global brands including Gap Inc, New Balance, Promod and Guess among other international labels.

Last year, blaming the pandemic, Gap and its India franchisee, Arvind Fashions, decided to call their alliance off, six years after the Bengaluru-based company signed a master franchisee for India.

Boston-based New Balance had late last year snapped its franchise arrangement with Mumbai-based Major Brands, to sign up Gaurik Lifestyle as the new partner to run New Balance-branded physical outlets in India.

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