Levi’s to merge South Asia, Middle East, North African markets
Global denim giant Levi’s is looking to merge its South Asia, Middle East and North African markets into a common entity to drive growth and profitability in these regions. The consolidated business will be overseen by Sanjeev Mohanty, Managing Director, South Asia Operations who has delivered strong results in the Asia market.
In India alone, Levi’s witnessed a 12 percent surge in sales revenue at Rs 842 crore (approx $130.3 million) during the fiscal year to March 2017, reporting a net profit of Rs 58 crore (approx $9 million). Levi Strauss's overall international sales reached $1.268 billion in the last quarter (Q3), with Asia contributing a significant $182 million to the total revenue.
Mohanty will be expected to replicate the success of Asia in the Middle East and North African markets which have been delivering poor results despite their similarity to Asian markets. Levi’s has stated that it will spend heavily on advertising and media in the fourth quarter which is expected to give a boost to sales in these markets.
“The approval to merge these markets was taken earlier this month and Mohanty has been given the charge to lead these markets. Many industry rivals have also been exploring moves to merge similar markets focusing on consolidation,” the Times of India reported, citing sources.
Confirming the development, a Levi’s spokesperson said: “Sanjeev has successfully led the South Asia region for over a year now, and we look forward to him bringing similar success, by driving growth and profitability, in his additional mandate as well.”
In 2016, the Levi’s group generated a revenue of $4.6 billion globally, and has revised its guidance for the fiscal year 2017 as a whole, currently forecasting a growth between 5% and 6%.
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