Home Retail Arvind announces proposal to demerge brands and retail business

    Arvind announces proposal to demerge brands and retail business

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    The board of directors of have announced plans for demerger of its branded apparel business and the retail business (under the banner) into wholly owned subsidiaries with effect from April 1, 2009.

    Arvind Ltd Q4 net profit falls on account of higher expenses
    In a separate filing, Arvind Ltd said it plans to raise up to Rs 500 crore through issuance of non-convertible debentures on a private placement basis

    The demergers will be done with effect from April 1, 2009 through a court approved scheme and the company would be filing the requisite documents with appropriate authorities.

    According to , chairman and managing director, Arvind Ltd, “We are proposing the demerger of brands and Megamart business into separate wholly owned subsidiaries to bring enhanced financial focus on these entities and look at possible alternatives for fund raising in these vehicles at an appropriate time in future.”

    Branded apparel business which markets apparels and accessories under the brands –Arrow, Flying Machine, Newport, Excalibur and yet to be launched brands like , USPA, , Sansabelt and Hart Schaffner Marx will be demerged into limited.

    Retail business under the Megamart banner operating about 150 stores across India along with the license for value brand – Cherokee, will be demerged into Limited. is the merchant banker advising the company on the transactions.

    —IndiaRetailing Bureau, Mumbai