Celio, a French menswear retailer, has increased its stake in a 50:50 (JV) with Kishore Biyani-led Future Group to 65 per cent, sources said.
As a result of this, Future Lifestyle Fashions (FLF), the fashion and lifestyle arm of Future Group owns 35 per cent stake in the company Celio Future Fashions. The news was first reported by Business Standard, citing sources. However, a Future Lifestyle Fashions spokesperson declined to comment.
In a group restructuring, Future Ventures had hived off its lifestyle investments into a new listed firm Future Lifestyle Fashions. The firm was created through the demerger of the lifestyle fashion businesses of Future Retail Ltd (formerly Pantaloon Retail (India) Ltd) and Future Ventures India Ltd.
The news of increased stake in JV comes after the company received consent from Foreign Investment Promotion Board (FIPB) allowing Celio to raise its stake in the company to 100 per cent in July.
Celio plans to invest Rs 40 crore to open new stores to enhance its presence in India. The BS report mentioned that eventually Celio is expected to own 100 per cent owner of the JV and that Future Group will exit. However, VC Circle could not confirm the information of stake being raised to 100 per cent.
Currently, Celio has 38 standalone stores and 130 shops in the country. Founded in 1985 by Marc and Laurent Grosman, Celio International has 1,000 stores in 66 countries. It operates through 30 exclusive brand outlets and 100 multi-brand outlets.
Recently Future Lifestyle Fashion exited its investment in ethnic wear firm BIBA apparel and Anita Dongre owned AND for Rs 450 crore.
(Edited by Joby Puthuparampil Johnson)