French fashion powerhouse Louis Vuitton has made a significant real estate move in Mumbai, securing a long-term lease for a prime retail space from Mukesh Ambani’s Reliance Industries. Here’s the breakdown of the story:
Louis Vuitton, a renowned luxury fashion brand, has inked a deal for a retail space in Mumbai’s Bandra-Kurla Complex, marking a milestone as their largest showroom worldwide. The long-term lease agreement was signed with Reliance Industries, cementing their presence in the vibrant Indian market.
This lease spans 9.5 years and encompasses a sprawling area of 7,365 square feet, strategically located at Jio World Plaza.
As part of the agreement, Louis Vuitton India Retail will make monthly payments to Reliance, amounting to Rs 40.5 lakh. The payment structure involves either the fixed sum or 6 percent of the net revenue share, depending on which amount is higher. Notably, the rent will see a 15 percent increment after the initial 36 months.
Louis Vuitton Leases Mumbai Property from Reliance Industries, Creating World’s Largest Showroom
Additionally, Louis Vuitton has placed a security deposit of Rs 2.43 crore as part of the lease arrangement. They have also committed Rs 24.30 lakh for security related to the common area and Rs 29.46 lakh designated for fit-out purposes.
Louis Vuitton is under the ownership of Bernard Arnault, the world’s second-richest individual, who boasts a portfolio of 75 luxury fashion and cosmetics brands. With a staggering net worth of $208 billion, Arnault ranks among the wealthiest individuals globally. Meanwhile, Mukesh Ambani, chairman of Reliance Industries, holds the title of Asia’s richest person with a net worth of $94 billion.
Arnault’s acquisition history includes the purchase of America’s iconic Tiffany and Company for a substantial $15.8 billion in 2021. His foray into the luxury industry began in 1984 with the acquisition of Christian Dior for a relatively modest $15 million. He is also a proud father of five children.
This strategic lease marks a significant step in Louis Vuitton’s expansion plans in India, as they position themselves for continued growth in the region.