Published
Oct 26, 2016
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Arvind Ltd splits its brands and retail division

Published
Oct 26, 2016

Textile firm Arvind Ltd has split its brands and retail division into a separate company to sell 10% stake in the new entity to Multiples Alternate Asset Management for Rs 740 crore, according to a report in the Economic Times.

The new firm with an enterprise value of about Rs 8,000 crore will house more than two dozen in-house and global franchisee brands such as Gap and US Polo, along with joint ventures with Calvin Klien and Tommy Hilfiger.


Arvind Ltd splits its brands and retail division


The valuation is close to its parent company's market cap which stood at Rs 9288 crore on Monday.
 
Multiples is a private equity firm led by former ICICI banker Renuka Ramnath.

In 2005-06, Arvind retail business was just 7% of Arvind Ltd's annual revenue. Now, the segment accounts for over 30% or Rs 2, 500 of the traditional textile firm's overall revenues.
 

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