Swiss Military Consumer Goods Ltd to be sole licensee for Swiss Military brand in India

Presently Swiss Military Consumer Goods Ltd is carrying the business activities under the brand "Swiss Military" for Small Home Appliance and Men's Innerwear Categories by virtue of agreement entered with Promoshirt SM S.A., Switzerland, owners of the brand "SWISS MILITARY" as on 12th November, 2020 and able to gain good ground and growing at a good pace with the objective to create sustainable growth and value creation to the all stakeholders.

Now, to avoid conflict of interest, the promoter Company Swiss Military Lifestyle Products Pvt. Ltd., (who is already in the business of lifestyle products under the brand "Swiss Military" in India except for the categories given to company), have decided to discontinue their existing business activities in relation to brand "Swiss Military" in India and same will be integrated with the business activities of the Company. However, for smooth transition, promoter entity shall fulfill their direct pending business obligations for the time being.

All rights of brand "Swiss Military" for the Indian operations, earlier tied up with promoter entity (except existing / pending agreement / arrangement by promoter company and its associates) shall be tied up with the company and for giving effect to the same, an addendum to the agreement dated 12th November 2020 has been executed as on 04th June 2022 between the company, promoter company i.e. Swiss Military Lifestyle Products Pvt. Ltd. and brand owner i.e. Promoshirt SM S.A., Switzerland

Accordingly, now onwards all the present and future business operations of the brand "SWISS MILITARY" in India shall be carried by the Company for all the product categories including but not limited to Home Appliances, Men's Innerwear, Garments, Bags, Luggage and Travel Gear, Travel Accessories, Electronics and other accessories.

Now company will have all existing customer base, distributor & marketing network, ecornmerce network, websites, corporate office and leased premises, vendors, manufacturers, service providers, employees and other resources related to promoter entity and henceforth will be integrated with the existing business resources of the company. The integration will help in optimal utilisation of resources due to pooling of various resources, better administration, cost reduction, coordination and streamlining of day to day operations, leading to improvement in overall working culture and environment.

Henceforth, Company will have two websites fore-commerce businesses:

1) www.swissmilitaryshop.com
2) www.swissmilitaryindia.com

Over the past 30 years of the brands existence, Swiss Military brand has made a strong presence in many countries globally across various product segments. Consumers worldwide, for over 30 years have shown their love and appreciation for the Swiss Sense of design, adventure, quality and lifestyle the Swiss Military brand represents.

The proposed integration of businesses will give company a big leap in the business. This will help in unlocking the brand potential in India, which will automatically lead to sustainable growth in the business of company and will extend the value creation to all the stakeholder of the company in coming years. Now the Company is all set to leverage Global Brand Strength and Platform Presence of "Swiss Military" Brand in the Indian Market to ride the Next Phase of Growth.

Shares of Swiss Military Consumer Goods Ltd was last trading in BSE at Rs. 25.15 as compared to the previous close of Rs. 24.95. The total number of shares traded during the day was 41208 in over 246 trades.

The stock hit an intraday high of Rs. 25.80 and intraday low of 24.50. The net turnover during the day was Rs. 1036019.00.

Source : Equity Bulls

Keywords

SwissMilitaryConsumerGoods Licensee SwissMilitaryBrand India