Indian privately held corporation Future Group has completed the full demerger of its flagship company Pantaloons, a multiple retail format that operates in both the value and lifestyle segments.

The demerged entity has invited an investment of Rs1600 crore (approximately US$330 million) from Aditya Birla Nuvo Limited, a unit of Aditya Birla Group. The demerger converts Pantaloon’s debentures worth Rs800 crore (about US$178 million) into equity and the existing shareholders of Pantaloon, including its promoters, will continue to own shares in the demerged entity.

“We are honored to be associated with India’s pre-eminent and among the most respected business houses. We always had a great admiration and respect for the businesses developed by Madura Garments. This marks a unique coming together of brands and enterprise that will create significant value for customers, suppliers and all stakeholders,” said Future Group founder and CEO Kishore Biyani.

“The acquisition is in line with our strategic intent to be on the top of the league and to create the largest integrated branded fashion player in the country through an extension into the value segment. This acquisition will catapult Aditya Birla Nuvo Limited to the pole position in the branded fashion space in all the segments with a pan-India presence,” said Kumar Mangalam Birla, chairman of Aditya Birla Nuvo Limited.

A Fashion Council, bringing in the leadership teams of Madura Garments and Future Group, will aid and advise the management with the objective to fully leverage the strengths of Madura Garments and Pantaloons.

Madura Garments is the lifestyle garments business of Aditya Birla Nuvo Limited defined by its brands Van Heusen, Louis Philippe, Peter England, Allen Solly and The Collective.

Pantaloons, launched in 1997, has 65 stores in 35 cities across India, along with the reverse logistics chain Pantaloons Factory Outlet that has 21 stores.

GB