Investment and business management company Future Ventures India has re-invested Rs 10.4 crore ($2 million) in two portfolio firms, Aadhaar Retailing Ltd (ARL) and Clarks Future Footwear (CFFL).
ARL, a subsidiary of Future Ventures in which Godrej Group owns 30 per cent stake, has got an investment of Rs 8.4 crore while Future Ventures has invested Rs 2 crore afresh in CFFL, a 50:50 JV with UK’s C&J Clark International.
This investment in ARL by Future Ventures has been made by way of subscription to and further allotment of further equity shares. Post this transaction too, the shareholding of Future Ventures in ARL continues to be 70 per cent and the rest by Godrej Group.
This is not the first time it has put in more money in ARL. Last year, Future Ventures had pumped in an additional investment of Rs 20 crore by subscribing to two million zero-coupon optionally convertible debentures of ARL.
Future Ventures had picked 70 per cent stake in ARL for Rs 30.18 crore from its promoter Godrej Agrovet in March 2008. It had also invested more money in the firm in January 2010, and March 2010, but that did not change its holding as other shareholders also re-invested.
The firm that has managed to raise substantial investments from Future Ventures is a rural and semi-urban retailer of agricultural products and consumer products including apparel, seeds, fertilizers and FMCG goods. The total revenue of ARL for Financial year ended March 2012 was Rs 93.37 crore, up from Rs 66.4 crore the previous year.
Similarly, Future Ventures has also re- invested Rs 2 crore in CFFL, which is into the business of marketing and distribution of footwear in India under the international brand ‘Clarks’.
Early this year it had invested Rs 1.25 crore in CFFL and last November put in Rs 2 crore in the venture, maintaining its 50 per cent stake.
Clarks Future operates exclusive and multi brand outlets selling footwear across India. The total operational income of Clarks Footwear during FY12, the first full year of its operations, has been Rs 23.53 crore.
After it went public early last year, Future Ventures has been active in putting in fresh money into its existing investee firms.
Last month, Future Ventures had struck a deal to buy the convenience store chain Big Apple, which is part of Express Retail Services Pvt Ltd, for Rs 61.35 crore ($11.3 million). This was the second back-to-back transaction after the public-listed firm disclosed that it was buying the convenience store chain under Pantaloon Retail (which is under the banner of KB’s Fair Price) through an arm, Future Consumer.
Future Ventures has stakes in various privately held firms of the Future Group, as well as in other firms. Last month it also acquired the salon and wellness centre business from Pantaloon Retail India Ltd that operates the business under the brand Star & Sitara.
(Edited by Prem Udayabhanu)