IndiaRetailBiz

“The proposed Reliance Retail-Avery Dennison JV will combine the global resources of Avery Dennison with local market knowledge and resources of Reliance Retail to strengthen existing supply chain network and enhance merchandising capabilities.”

Avery Dennison Corp, the Pasedana (US)-based, global giant in pressure sensitive technology, with $6.3 billion in 2007 sales, employing over 30,000 persons across 60 countries worldwide, according to an ET report, is soon entering into a 49:51 joint venture with India’s fastest growing retailer Reliance Retail. Founded in 1935, Avery Dennison was ranked 382nd on the prestigious Fortune-500 list of 2007.

This is tune with Reliance’s shift of strategy that emphasizes on stitching partnerships with global leaders in retail who besides providing domain expertise can ensure quick growth. In recent times, Reliance Retail, among others, has inked joint venture agreements with global majors Marks & Spencer, Apple, Vision Express, and Office Depot.

Besides offering the products and services of Avery Dennison through stores of Reliance Retail, the Joint Venture is expected to also offer the same to institutional business customers in India through indirect channels. The join venture, according to sources, will also roll out standalone specialty stores across the country.

Avery, known the worldover for its pressure sensitive material under ‘Fasson’ brand and office consumer products under ‘Avery’ brand, also provides price marking and brand identification material to retail and apparel industries through its retail information services segment and offers a variety of specialty products including performance films, postage stamps, battery labels through its ‘Specialty Converting Businesses’ division.

Avery Dennison is already present in India through its manufacturing facilies at Gurgaon, Rajnandgaon (Pune) and Bangalore and sales and distribution network operating from the six metro cities of Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata. Having began its operations in India with the setting up of its first factory at Gurgaon in 1997, Avery Dennison acquired the business of Bangalore-based Paxar in 2007. It set up its third 28-acre manufacturing facility at Rajnandgaon (Pune) in January of this year. It has invested over $30 million and employes over 1,200 people in India.

As Avery Dennison has an impressive range of products and services catering to retail industry, including price marking and product identification material as well as RFID (Radio Frequency Identification) products, the proposed JV could meet the growing in-house requirements of Reliance Retail.