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Multiples PE-backed Arvind to demerge branded apparel, engineering biz

09 November, 2017

Ahmedabad-based textile conglomerate Arvind Ltd has decided to demerge its branded apparel and engineering businesses from the parent company, and renew its focus on textiles to unlock shareholder value.

In a stock market disclosure on Wednesday, the company said that the branded apparel business will come under Arvind Fashions and the engineering business under Anup Engineering. It plans to list the two entities separately on the stock exchanges.

“We are pleased to announce that Arvind Fashions and Anup Engineering will now also pursue their independent courses,” said Arvind managing director Sanjay Lalbhai.

After the demerger Arvind shareholders will be entitled to one equity share of Arvind Fashions for every five shares held in Arvind Ltd.

Arvind Fashions, which is backed by private equity firm Multiples Alternate Asset Management Pvt. Ltd, includes several licensed product brands such as Calvin Klein, Tommy Hilfiger, US Polo Assn, Ed Hardy, Hanes, Arrow, Gant and Nautica. It also own Flying Machine and Colt.

The engineering business, which is involved in manufacturing critical process equipment such as heat exchangers, pressure vessels, reactors, columns and towers, and centrifuges, will be demerged into Anveshan, and renamed Anup Engineering. Shareholders will be entitled to one equity share of Anup Engineering for 27 shares held in Arvind Ltd.

Once the process is completed, both entities will be separately listed on the BSE and the NSE.

Arvind Ltd posted consolidated revenues of Rs 9,235 crore for 2016-17. The company said that its apparel business is poised to grow faster and it will put in Rs 1,500 crore to transform the category.

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Multiples PE-backed Arvind to demerge branded apparel, engineering biz

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