Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
23 September, 2021 11:34 IST
Arvind Fashions arm sells Unlimited retail biz to V-Mart
Source: IRIS | 23 Jul, 2021, 09.08PM
Rating: NAN / 5 stars.
Comments  |  Post Comment


Arvind Lifestyle Brands (ALBL), a wholly-owned subsidiary of Arvind Fashions (AFL), India’s leading casual and denim player, has signed definitive agreements for strategic sale of assets of its Unlimited retail business to V-Mart Retail in an all-cash transaction.Unlimited operates a chain of 74 value fashion retail stores across South and West India and retails fashion apparel and accessories for men, women and children at affordable prices.

As part of the transaction, ALBL will sell assets of the 74 retail stores, warehouses, inventory and the 'Unlimited' brand to V-Mart at its book value.ALBL would receive cash consideration estimated at about Rs 1,500 million upon the closure of transaction and thus, will fully recover the capital employed in the business.

In addition, there are contingent payments to be received, based on certain milestones achieved by V-Mart over next few years for these stores, post the acquisition. The Company intends to utilise the amount so received for repayment of debt and for working capital purposes.

This sale will help AFL achieve its objective of focusing on its 6 high conviction brands which include US Polo Assn., Tommy Hilfiger, Arrow, Flying Machine, Calvin Klein and Sephora. This also significantly completes the process of reset that AFL had embarked on, to consolidate and sharpen its portfolio as well as to strengthen its balance sheet.

Speaking on this divestment, Shailesh Chaturvedi, Chief Executive Officer, Arvind Fashions, said, "We are delighted to find a strong home in V-Mart for Unlimited. We had created a scalable format with significant product capabilities in value retail, which has a large potential. However, in line with our strategy of focusing on our 6 high conviction brands, we decided to exit the business. This would help us put capital behind growing our six focus brands, helping generate significant shareholder value."

Commenting on the transaction, Lalit Agarwal, Managing Director, V-Mart Retail said, "We are proud to bring the 'Unlimited' stores within the umbrella of V-Mart family. The business had been turned around by Arvind Fashions, and fits well with our strategy of expanding our regional presence as well as adding capabilities in select categories.

Our combined strengths - VMart's expertise in creating a scalable and profitable value fashion retailing business model, and Unlimited’s large presence in South India with strong fashion mindset and delivering a differentiated store experience to customers, provides a long runway for sustained stakeholder value creation & will allow us to gain strategic insights and presence in this very attractive market."

Shares of the company declined Rs 4.80, or 2.38%, to settle  at  Rs 197.10.  The total volume of shares traded  was  494,957 at  the BSE (Friday).




 Post Comment
Name Email
Comment
Security Code type    into this box
Sector
Lumax Auto Technologies incorporates subsidiary company - 23-Sep-2021 12:31
Indiabulls Housing Finance plans to raise USD 165 mn via FCCBs - 22-Sep-2021 20:15
Surya Roshni bags Rs 412.2 mn order from GNIDA - 22-Sep-2021 20:00
KEC International wins new orders of Rs 11,570 mn - 22-Sep-2021 19:35
Mumbai likely to see 7,000 property registrations in Sep2021: Motilal Oswal - 22-Sep-2021 17:31
Trejhara Solutions bags order from one of largest logistics firms - 22-Sep-2021 13:27
Ramkrishna Forgings wins non-auto segment order worth Rs 650 mn - 22-Sep-2021 13:09
Mphasis arm acquires Blink Interactive - 22-Sep-2021 12:54
Clean Science and Technology enters into agreement to acquire property - 21-Sep-2021 19:50
Cadila Healthcare arm inks pact with Integrace - 21-Sep-2021 19:36
HDFC Life's latest website design promises a delightful user experience - 21-Sep-2021 17:16
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer