Arvind to demerge brands, retail biz

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Mumbai: Apparel major Arvind Ltd will demerge its brand and retail business division into separate units as wholly owned subsidiaries from April 1, 2009. The transaction is being advised by merchant banker Enam Securities. The branded apparels business, which markets Arrow, Flying Machine, Newport, Excalibur etc, will be demerged into Arvind Lifestyle Brands Ltd. The retail business that operates under the banner of MegaMart will be demerged into Arvind Retail Ltd. Under the MegaMart banner, Arvind, at present has about 150 stores across the country along with the license for the world’s largest value brand Cherokee.

Says Sanjay Lalbhai, chairman and managing director at Arvind Ltd, “The demerger of brands and Megamart business into separate wholly owned subsidiaries is aimed to bring enhanced financial focus on these entities and we will look at possible alternatives for fund raising in these vehicles at an appropriate time in future.”