Tata Group-led Titan Company on Thursday announced to exit its joint venture with German luxury brand Montblanc.
The development is in line with Titan's strategy to focus on its primary business and proprietary brands, the company said in a regulatory filing.
As per the joint venture agreement, the partnership will end in December 2020.
"In line with the company's strategy to focus on its primary business and proprietary brands, and as mutually agreed with Montblanc, the company would be divesting its stake in the JV company and accordingly the requisite formalities will be completed in December 2020," Titan said in a regulatory filing.
The India joint venture of Montblanc was formed by establishing Montblanc India Retail Pvt Ltd (joint venture) in 2014, in which Titan holds 49 per cent stake.
Post the end of the joint venture Montblanc to continue its expansion strategy as wholly owned subsidiary in India.
C.K. Venkataraman, Managing Director of Titan Company Limited, said: "We have decided that during these rather challenging times our primary business musttake precedence. Both parties have greatly benefitted from this partnership,and our relationship with Montblanc remains strong and positive."
Nicolas Baretzki, CEO of Montblanc International, said: "We are grateful for our partnership with Titan - it is one that has allowed us to establish Montblanc as a luxury Maison with significant presence in India today, and set us on course for the next chapter of our journey. This is a market that holds strong long-term potential for Montblanc, and it is a mark of confidence that we now become a wholly owned subsidiary."
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