Rupa & Co to merge with its premium brand subsidiary Oban Fashions
Knitwear business Rupa & Co will merge with its wholly-owned premium brand subsidiary Oban Fashions. The merger will take place during the third quarter of the 2022 financial year and is designed to aid expansion.
Oban Fashions’ portfolio includes international clothing brands FCUK and Fruit of the Loom and expects its revenue to touch Rs 40 crore in the 2022 financial year, The Economic Times reported. The merger will create a synergy of business aims between the two businesses and is part of Rupa & Co’s plan to grow its e-commerce business and export its garments to new international markets.
“The merger will take place in the third quarter of 2021-22, thereby giving it a distinct advantage in the Indian market,” said Rupa & Co CEO Dinesh Lodha, The Press Trust of India reported.
“With this development, Oban Fashions anticipates increased market share, reduction in the cost of operations, a wider range of products, and expansion to new markets with greater potential to sell international brands.”
With both businesses targeting double-digit growth, the merger is designed to accelerate this trend. The business also plans to expand inside India with a focus on the eastern and southern markets.
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