Future Lifestyle Fashions Limited (FLF), the fashion apparel, accessories and associated products arm of Kishore Biyani-led Future Group, will be divesting 31.5 per cent stake in its joint venture with Celio, a French menswear retailer, bringing down its stake it to 3.5 per cent, as per a stock market disclosure.
“FLF has executed definitive documents with Celio International SA, Belgium, for divestment of its 31.5 per cent stake in Celio Future Fashion Limited (CFFL),” as per the disclosure. It did not disclose the deal amount.
Last year Celio had increased its stake in the equal equity JV to 65 per cent. The Indian operations had around 30 exclusive branded outlets as of March 31, 2014.
Started in 1985 by Marc and Laurent Grosman, Celio is a household name in Italy, France and Spain. A €1.1 billion company, it has a presence in over 65 countries with over 1,000 stores.
Future Lifestyle was formed after Future Ventures, now known as Future Consumer Enterprise Ltd, hived off its lifestyle investments as part of a group restructuring. The JV with Celio was previously housed under Future Ventures.
Since listing on October 1, Future Lifestyle Fashions has invested in three firms. Apart from acquiring 30 per cent stake in private label footwear e-tailer Famozi, recently the firm acquired 12 per cent equity stake in the Delhi-based handbags maker Unico Retail Pvt Ltd, which operates under the brand Peperone, for an undisclosed amount.
In January this year, Fashion Lifestyle had acquired 27.5 per cent stake in Resource World Exim Pvt Ltd, a company engaged in women’s fashion apparel business under the brand ‘Desi Belle’, for an undisclosed amount.
The company has also struck two exits from its previous investments, including divestment of holding in AND Designs and Biba Apparel, last year.
Recently, Future Lifestyle Fashions raised Rs 125 crore ($20.8 million) from PremjiInvest, the private investment arm of Wipro chairman Azim Premji. The investment firm will get around 8.1 per cent stake in Future Lifestyle Fashions after the associated securities are converted into equity.
(Edited by Joby Puthuparampil Johnson)