Celebrity Fashions Limited (CFL), owner of Indian Terrain brand retail outlets and manufacturer and an exporter of readymade garments to the US and Europe, is in rejig mode. The company has decided to hive off its bottom?s division into a separate entity called Celebrity Clothing Limited (CCL) and decides to demerge its domestic business under Indian Terrain Fashions Limited (ITFL) to put greater focus on the core business of each of the units.
Having incurred huge losses on the export front due to poor market conditions and want of fresh orders, the company has decided to bring in strategic investor/s for its new entity CCL. ?We have roped in SBI Capital Markets as well as Price WaterhouseCoopers to help us identify suitable strategic investors for our bottoms business (CCL), primarily engaged in exports. We have done the valuation for this division already and willing to dilute upto 50% in CCL,? said S Suryanarayanan, executive director. ?We hope to finalise a partner in the next three to six months.?
Speaking to the FE, he said: ?Due to tough market conditions and increasing competition in the US and elsewhere, our margins have been affected badly. We want to ensure that each of our divisions get due focus. So we are making them separate entities to achieve the desired enterprise value.? CCL (which makes bottoms) has one facility and Celebrity Fashions (which makes tops) has three plants.
?Indian Terrain is a Rs 80-crore brand now and hopes to do Rs 150 crore business in next two years,? he said.
