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The Textile Magazine
MAY 2012
Aditya Birla Nuvo
acquires
major stake in Pantaloons
corporate news
Said Mr. Kumar Mangalam Birla,
Chairman, ABNL: “The proposed
acquisition is in line with our stra-
tegic intent to be on the top of the
league and to create the largest inte-
grated branded fashion player in the
country through an extension into
the value segment. This acquisition
will catapult ABNL to the pole po-
sition in the branded fashion space
in all the segments with a pan-India
presence.”
“On completion of the acquisi-
tion, the two entities, ABNL’s
Madura Fashion & Lifestyle and
PRIL, will work closely as part-
ners to derive operational syner-
gies in terms of back-end, supply
chain and many other im-
portant value drivers of the
business. “We are delighted
to have Mr. Kishore Biyani
as our partner in the Panta-
loons Format business. Fur-
thermore, to ensure continu-
ity, the current management
team will continue to run the
business,” added Mr. Birla.
With this acquisition, ABNL will
have multiple brands, store formats
and a complete range across all cat-
egories – casual wear, ethnic wear,
formal wear, party wear and sports
wear for men, women and kids.
Both ABNL and PRIL have a
common shared vision of creating
value for its multiple stakeholders.
ABNL’s Madura Fashion & Life-
style put in an impressive perform-
ance for 2011, with a revenue of
Rs. 2,145 crores. Its leading brands,
Louis Philippe, Van Heusen, Allen
Solly, Peter England, People and
The Collective, span a retail space
of 1.6 million square feet across
the country. Pantaloons Format
business is spread over 2.05 mil-
lion square feet. Their combined
strength will be of great advantage
for all the stakeholders.
Here is how the transaction
will be executed:
PRIL will issue debentures
to ABNL worth Rs. 800 crores
on mutually agreed terms,
convertible in the equity shares
of the resulting entity, i.e., Pan-
taloons Format business.
The Board of Directors
of Aditya Birla Nuvo Ltd.
(ABNL) has approved the
proposed acquisition of a
controlling stake in Future
Group’s Pantaloons Format
business post its demerger
from Pantaloons Retail
(India) Ltd. (PRIL).
“We are delighted to have Mr.
Kishore Biyani as our partner
in the Pantaloons Format
business.
Furthermore,
to
ensure continuity, the current
management team will continue
to run the business.”
– Mr. Kumar Mangalam Birla
Mr. Kumar Mangalam Birla, Chairman, ABNL