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Pantaloon catapults Aditya Birla Nuvo to pole position
01 May '12
2 min read
The majority stake picked up the Kumar Mangalam Birla-led Aditya Birla Nuvo in the apparel business of Pantaloon Retail has set the stage for a consolidation of the garment retail business in India.
This single move, would firmly catapult the clothing division of Aditya Birla Nuvo - Madura Garments & Lifestyle to pole position and make it the single largest apparel retailer in India.
Under the deal, apparel retail stores under the Pantaloons format will be spun off from Pantaloon Retail, into a separate entity. It is expected that this separate entity will be merged in to Aditya Birla Nuvo in the near future.
While Madura Lifestyle has a strong line-up of men's brands, the acquisition will give the Aditya Birla Nuvo access to a large section of the market like women's and childrenwear categories.
Aditya Birla Nuvo which has in its fold premium garment brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, People and The Collective will buy the stake for Rs 8 billion.
Currently, Pantaloon has 65 Pantaloon stores in 31 cities, besides 21 factory outlets and has a retail footprint of 2 million square feet, with 21 more stores in the offing.
On the other hand, Madura has more than 1,000 exclusive branded outlets with over 1.5 million square feet of retail space. The company's brands are also available in over 100 large format stores like Central, Lifestyle, Shopper's Stop, Reliance and Max, etc.
Speaking about the deal, Kumar Mangalam Birla, chairman of the $35-billion Aditya Birla Group, said, “The proposed acquisition is in line with our strategic intent to be on top of the league and to create the largest integrated branded fashion player in the country through an extension into the value segment."
Kishore Biyani, CEO, Future Group, said, “This marks a unique coming together of brands and enterprise that will create significant value for customers, suppliers and all stakeholders."
This single move, would firmly catapult the clothing division of Aditya Birla Nuvo - Madura Garments & Lifestyle to pole position and make it the single largest apparel retailer in India.
Under the deal, apparel retail stores under the Pantaloons format will be spun off from Pantaloon Retail, into a separate entity. It is expected that this separate entity will be merged in to Aditya Birla Nuvo in the near future.
While Madura Lifestyle has a strong line-up of men's brands, the acquisition will give the Aditya Birla Nuvo access to a large section of the market like women's and childrenwear categories.
Aditya Birla Nuvo which has in its fold premium garment brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, People and The Collective will buy the stake for Rs 8 billion.
Currently, Pantaloon has 65 Pantaloon stores in 31 cities, besides 21 factory outlets and has a retail footprint of 2 million square feet, with 21 more stores in the offing.
On the other hand, Madura has more than 1,000 exclusive branded outlets with over 1.5 million square feet of retail space. The company's brands are also available in over 100 large format stores like Central, Lifestyle, Shopper's Stop, Reliance and Max, etc.
Speaking about the deal, Kumar Mangalam Birla, chairman of the $35-billion Aditya Birla Group, said, “The proposed acquisition is in line with our strategic intent to be on top of the league and to create the largest integrated branded fashion player in the country through an extension into the value segment."
Kishore Biyani, CEO, Future Group, said, “This marks a unique coming together of brands and enterprise that will create significant value for customers, suppliers and all stakeholders."
Fibre2fashion News Desk - India
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