The Fruit if the Loom brand is coming to India in a deal that will bring extensive royalties to Berkshire Hathaway and little risk.
Rupa and Company, the number one knitwear maker in India, has struck a deal with Berkshire’s Fruit of the Loom to license the brand for India.
Rupa, which has the capacity to make over 700,000 pieces of knitwear a day, will pay a fixed royalty for the right to manufacture Fruit of the Loom branded products.
Siddhant Agarwal, VP-Business Development & Acquisitions at Rupa and Company, told CNBC-TV18 that the company plans to debut the Fruit of the Loom brand in September or October 2017.
Rupa has received broad recognition for its success in the knitwear industry, including receiving the Best Corporate Brand Award by The Economic Times at ‘The Economic Times Best Corporate Brands Summit 2015’ held in Mumbai.
The company’s shares are listed at NSE and BSE.
© 2017 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.