Homegrown e-commerce portal Flipkart has picked a “significant” minority stake in Arvind Fashions which owns Flying Machine brand of apparels.
Homegrown e-commerce portal Flipkart has picked a “significant” minority stake in Arvind Fashions which owns Flying Machine brand of apparels. The Sachin Bansal co-founded company has invested Rs 260 crore in AFL’s subsidiary Arvind Youth Brands after years of engagement between the two firms. The Arvind Fashions’ recently-formed subsidiary owns the Flying Machine brand. “The Flipkart Group and Arvind Fashions (AFL) strengthened their partnership, through an investment of Rs 260 crore by Flipkart Group to purchase a significant minority stake in… Arvind Youth Brands which will own the Flying Machine brand,” the company said in a regulatory filing on Thursday. Arvind Fashion has been retailing its Flying Machine brand apparels on Flipkart and Flipkart-owned lifestyle and fashion e-commerce platform Myntra.
“Through this investment, we look forward to partnering with the team at Arvind Youth Brands to continue to grow the market for its portfolio of products and enhance the strong brand equity that has been built over the last few decades,” Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said. The transaction is dependent on securing customary conditions. Metta Capital Advisors acted as the financial advisors to AFL for this transaction. “The partnership with the Flipkart Group will help us accelerate our online growth strategy as we focus our efforts on developing an omni-channel retail approach for Arvind Youth Brands and Flying Machine,” J Suresh, Managing Director and Chief Executive Officer of Arvind Fashions, said.
Meanwhile, e-commerce companies have been directed to show ‘country of origin’ tag on products amid face-off with China. India has already banned 59 apps including TikTok, Shein and ShareIt from Dragon country citing security concerns. The move to show ‘country of label’ origin is a further step towards reducing the sales of Chinese items in the country amid prevalent anti-China sentiment. It will also help push Prime Minister Narendra Modi’s Atma Nirbhar Bharat dream. Online retail marketplaces such as Amazon, Flipkart, Snapdeal etc. have been given a deadline of August 1 to update new product listings.