One of India’s popular textile firm Arvind Ltd said that it will sell 10% of its equity in Arvind Fashion’s to Renuka Ramnath’s private equity firm Multiples for Rs 740 Cr. This transaction will be done at Arvind Fashion’s value being Rs 8,000 Cr.
Arvind has brands such as Gap, Aeropostale, Sephora, Calvin Klein, Tommy Hilfiger, US Polo Assn, Hanes and Arrow under their umbrella. They claim to have clocked a turnover of Rs 2,300 crores in FY 2015-16. Arvind Fashions deals in the business of brands only.
Arvind Lts Chairman Sanjay Lalbhai tells media that he is rasing this capital to unlock the full business potential of brands business. Great value has been added to Arvind in a short period of time thanks to the brands business. The financial support will act as muscle and to shape future strategic opportunities.
Further he said ”We are confident of continuing growth momentum and taking the business from over Rs. 3,200 crore this year to Rs. 9,000 crore by 2022.”
The investment will be used only to market and enhance the existing brands and now new brand assets will be bought with this. Read Business News.