The Italian retailer is banking on strong store productivity, a wider digital presence and higher procurement from Indian suppliers to build its business in the country
Italian fashion retailer OVS plans to expand its India presence to 11 stores by the end of 2028, from three by the end of 2026, while increasing the country’s contribution to its global sourcing over the next three to five years. The company is also preparing to launch an India-specific website in the Spring-Summer 2027 season as it builds its retail and digital presence in the country.
The company is targeting seven stores by the end of 2027, with a longer-term ambition of opening 25–40 stores across India over the next five to seven years, OVS India Managing Director Sundeep Chugh said in an interview with BE Retail World. Delhi-NCR and Mumbai will remain its initial focus markets, with the retailer evaluating additional locations after assessing the performance of its existing outlets.
“Our ambition is to make India our largest market outside Italy,” Chugh said, outlining the company’s longer-term plans for the country. The retailer is also looking to increase sourcing from India, where its sourcing office currently accounts for around 12–15 per cent of its global sourcing, creating a parallel growth opportunity beyond store expansion.
“We are broadly on plan in terms of the performance of the business,” Chugh said, while declining to provide a like-for-like growth figure before the Diwali period concludes. He said differences in the timing of the festive season make comparisons difficult at this stage. The Delhi store opened after last year’s Diwali, while this year’s festive season is yet to play out.
A Two-City Rollout So Far
OVS opened its first Indian store at Pacific Mall, Tagore Garden, West Delhi, in October 2025, followed by a second outlet at Sky City Mall, Borivali, Mumbai, in March 2026. The Delhi store occupies approximately 9,000 sq ft, while the Borivali outlet spans around 11,000 sq ft. The company’s third store, also planned for Mumbai, will take its network to three by the end of 2026
“The Delhi store is doing very well. Our trade density is among the top two or three brands in the mall,” Chugh said. The outlet has an average bill value of around Rs 5,500, while its average selling price ranges between Rs 1,800 and Rs 2,200. Customers purchase an average of 2.5–2.8 items per transaction, providing the company with an initial benchmark for its Indian operations.
“We are broadly on plan in terms of the performance of the business,” Chugh said, declining to provide a like-for-like growth figure before the Diwali period concludes. Comparisons remain difficult because the Delhi store opened after Diwali last year, while this year’s festive season is still under way.
India’s Role In Global Sourcing
Alongside retail expansion, OVS plans to increase its sourcing base in India over the next three to five years. The company’s Indian sourcing office currently accounts for around 12–15 per cent of its global sourcing, Chugh said.
“We do not have our own factory in India. We work with suppliers, and India is an important sourcing destination for us,” he said. OVS relies on local suppliers rather than company-owned manufacturing facilities in the country, and intends to raise India’s contribution to its sourcing operations over the medium to long term.
Government incentive schemes for textile and apparel manufacturers form part of the policy backdrop to the company’s plans. India’s sourcing opportunity also comes amid changes in its trade relationship with the European Union, which announced the conclusion of a free trade agreement with India on 27 January 2026.
The policy backdrop has also shifted on the export side. India and the European Union announced the conclusion of their Free Trade Agreement on 27 January 2026, according to the Ministry of Textiles and Commerce Minister Piyush Goyal. The Ministry said the pact provides zero-duty access for Indian textiles and clothing across all EU tariff lines, removing duties of up to 12 per cent. The EU imported textiles and apparel worth USD 263.5 billion in 2024, of which India supplied about USD 7.2 billion, the Ministry said. An August 2026 report said the agreement had cleared legal scrubbing and was expected to be formally signed before the end of the year, after which it must be ratified by India and the EU.
Women’s Wear Leads India Business
Women’s wear accounts for approximately 45–50 per cent of OVS’s India business, followed by men’s wear at around 35 per cent and kidswear at approximately 20–25 per cent, according to Chugh. Women’s wear and kidswear have been performing particularly well, while men’s wear is tracking expectations. The category mix will be important as the retailer expands its assortment and store network.
OVS has also adapted elements of its collections to suit Indian buying patterns. European seasonal collections do not always align with Indian weather conditions, prompting the company to adjust its merchandise mix. Graphic T-shirts and shirts have been among the products performing well in the country, Chugh said.
The retailer is entering a market where value-fashion chains are expanding their presence and competing for consumers seeking affordable apparel. CareEdge Ratings estimated India’s apparel retail market at Rs 9.30 lakh crore in FY25, with organised retail accounting for approximately 41 per cent. It identified Zudio, Max Fashion and Reliance Retail’s Yousta among the chains expanding in the value-fashion segment.
Crisil Ratings said in September 2026 that organised apparel retail revenue was expected to grow 12–13 per cent in FY27, compared with 15 per cent in the previous year. A rising share of lower-priced apparel is moderating revenue growth, highlighting the importance of pricing, merchandise selection and store productivity for retailers seeking to expand in the segment.
Pricing Strategy Amid Input-Cost Pressures
OVS is seeking to manage higher raw-material costs without passing the entire increase on to consumers. Chugh said the company evaluates operational efficiencies and potential savings before deciding whether price adjustments are warranted. Its approach is aimed at balancing cost pressures with affordability in a market where consumers remain conscious of value.
“It is generally not that if there is any price increase in raw material, we pass it on completely to the consumer. We see whatever cost efficiencies we can bring within the system, whatever cost we can save from different elements, and we charge the consumer what is right and appropriate, considering the current economy and indicators,” Chugh said.
Cotton accounts for around 90 per cent of OVS’s product assortment, making raw-material prices an important consideration for its sourcing and pricing decisions.
The Ministry of Textiles told the Rajya Sabha on 24 July 2026 that domestic prices of the S-6 cotton variety had risen about 18 per cent and international prices about 19 per cent over the recent period. India’s cotton production was a provisional 290.91 lakh bales in 2025-26, against 352.48 lakh bales in 2020-21. Cotton area fell to 114.82 lakh hectares from 132.85 lakh hectares over the same period, as some farmers moved to other crops, the Ministry said.
To ease costs, the government exempted cotton imports from the 11 per cent customs duty between 1 June and 31 October 2026. The Cotton Association of India has estimated opening stocks for the 2026-27 season at a record 93.59 lakh bales, up 68 per cent year-on-year. It also noted that any change in import policy after the duty-free window closes could affect raw-material costs and margins across the textile value chain.
Festive Demand And Digital Expansion
The October-to-January period typically contributes around 55–60 per cent of OVS’s annual business, according to Chugh. The company expects the festive season to account for a similar share this year.
OVS is also developing an India-specific website, which it expects to launch in the Spring-Summer 2027 season. The company may explore marketplace partnerships at a later stage, Chugh said.
The online launch would add a direct digital sales channel to OVS’s India operations, alongside its physical retail network. CareEdge estimated that ecommerce accounts for about 22 per cent of organised apparel retail and could reach nearly 25 per cent by FY30. The company’s longer-term ambition of 25–40 stores will depend on how its business develops across the country over the coming years.
