ICICI takes 54 pc stake in Arvind Brands

<div class="section1"><div class="Normal">BANGALORE: Arvind Brands on Monday, just three weeks before its much-awaited launch of the Tommy Hilfiger brand in India, announced that ICICI Venture would be investing in a 54 per cent stake in the company. Arvind Brands has been a wholly-owned apparel subsidiary of the Lalbhai Group''s Arvind Mills, and the latest move will bring the latter''s stake down to 46 per cent.<br /><br />As per the understanding, Arvind Mills can at any time between one and eight years acquire an additional 5 per cent stake in Arvind Brands, thereby taking its holding in the company to 51 per cent. ICICI will appoint two people to Arvind Brands'' board, taking the total board strength to five.<br /><br />The acquisition is through a fresh issue of shares and the amount flowing into Arvind Brands will be utilised to reduce debt. "The debt will come down by 80-85 per cent," Arvind Brands president Darshan Mehta said. Mehta was unwilling to disclose the amount ICICI would bring in. Arvind Brands expects to end the current financial year with a turnover of about Rs 265 crore.<br /><br />ICICI Venture, which manages $500 million, has in the past invested in retailing and apparel businesses in India like Shopper''s Stop, Pantaloon and Indus League.<br /><br />Commenting on the move, Renuka Ramnath, MD & CEO, ICICI Venture, said the fund perceives branded apparel as one of the fastest areas of growth in the coming years. Arvind Brands has leading fashion apparel brands like Arrow, Lee and Wrangler.<br /><br /><formid=367815></formid=367815></div> </div>