Safari Industries (India) Ltd Enters into 20-Year Brand Licensing Agreement with Carlton Retail Pvt Ltd
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The company has a market cap of Rs 8,830 crore and a Guru Investor, Ashish Kacholia, holds a 1.84 per cent stake in the company.
Safari Industries (India) Limited has entered into a strategic licensing agreement with Carlton Retail Private Limited (CRL) to utilise the "CARLTON" brand name under Class 18 for products, including luggage, within the Indian market. CRL, a New Delhi-based entity incorporated in 2018, is recognised for its "Carlton London" brand, focusing on the wholesale and retail of fashion accessories and footwear. This agreement grants Safari the rights to the brand for an initial term of 20 years, with an option for a further 20-year renewal at the company's discretion. Notably, Safari holds no shareholding in CRL, and the agreement does not include special rights such as board appointments or restrictions on capital structure.
The financial obligations under this 20-year license include a yearly fee of either Rs 45 lakh or 5 per cent of total net sales, whichever is higher. Additionally, Safari will provide an interest-free refundable security deposit totalling Rs 99.50 crore, which is to be paid in tranches over a specified period, subject to the conditions of the contract. This collaboration allows Safari to integrate a lifestyle-oriented brand into its luggage portfolio while leveraging CRL’s established presence in the trendy, high-quality fashion segment in India.
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Safari Industries Ltd is a leading manufacturer of luggage bags and luggage accessories. There are two broad categories of luggage, i.e., hard luggage and soft luggage. The shares of the company have an ROE of 16 per cent and an ROCE of 19 per cent. Over the last year, the stock has seen a modest decline of 5 per cent. However, its long-term performance remains exceptional, with an 86 per cent gain over three years and staggering "multibagger" returns of 1,900 per cent over the past decade. The company has a market cap of Rs 8,830 crore and a Guru Investor, Ashish Kacholia, holds a 1.84 per cent stake in the company.
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