Italy-based apparel company Carrera Holdings has signed a deal with seven Indian retail parks to establish a company for the sourcing of grey clothes and finished goods, according to Carrera chairman and chief executive officer Vivek Jacob.

The company, backed by five parks in Tamil Nadu, one at Hyderabad and one at Chincholi, is due to be floated next month, according to Jacob. It will be targeting European customers, and will have a central office in Mumbai as well as sales and technical staff in the US, Italy, Japan, Germany and France.

Carrera is set to spend $2.5 million on the business over the next eight months.

According to Jacob, his company  would consider equity dilution should additional parks want to join.