NEW DELHI: Arvind Limited will be demerging its branded apparel and retail business which operates under the MegaMart brand into wholly owned subsidiaries from 1 April 2009.
The decision was taken by the board of directors of Arvind in a meeting held today.
Said Arvind Limited chairman and managing director Sanjay Lalbhai, "We are proposing the demerger of brands and MegaMart business into separate wholly owned subsidiaries to bring enhanced financial focus on these entities and look at possible alternatives for fund raising in these vehicles at an appropriate time in future.”
The branded apparel business which markets Arrow, Flying Machine, Newport , Excalibur and yet to be launched brands like Izod, USPA, Pierre Cardin, Sansabelt and Hart Schaffner Marx, will be demerged into Arvind Lifestyle Brands Limited.
The retail business which operates under the banner of MegaMart will be demerged into Arvind Retail Limited. Under the MegaMart banner, Arvind presently has about 150 stores across the country along with the license for world's largest value brand Cherokee.
The transaction is being advised by merchant banker Enam Securities.