Arvind Ltd, a textile firm has split its brand to sell 10 percent of its stake in a new entity.
The source revealed that the firm has split its brands and retail division into separate company to sell its 10 percent stake in Multiples Alternate Asset Management for 740 crore INR.
Led by former ICICI banker Renuka Ramnath, Multiples is a private equity firm.
The new firm is said to house more than 24 in-house and global franchisee brands with an enterprise value of around 8,000 crore INR. The in-house and global franchisee includes GAP and US Polo along with joint ventures with Calvin Klein and Tommy Hilfiger.
In 2005-06, Arvind retail business was just 7% of Arvind Ltd's annual revenue. Now, the segment accounts for over 30% or Rs 2, 500 of the traditional textile firm's overall revenues.