Textiles firm Arvind Ltd yesterday said it will raise Rs 740 crore from Renuka Ramnath-led private equity firm Multiples by diluting 10% stake in its subsidiary Arvind Fashions Ltd.
"We are delighted to have Multiples as an investor. Arvind is valued at 800cr and this transaction reflects the confidence of the investor community in the overall business strategy, the robustness of the platform and quality of our leadership team. The deal is an important milestone in our journey to be a fashion, apparel and accessories powerhouse," said Sanjay Lalbhai, CMD, Arvind Ltd. The deal is expected to be completed by November, he said.
"With India becoming the fastest growing economy in the world, we are confident of continuing this growth momentum and taking the business from over Rs.3200 crores this year to Rs. 9000 cr by 2022. This transaction helps Arvind unlock the value that the brands business has accomplished in a short period and add financial muscle to future strategic opportunities for the Group. We will immensely benefit from our association with Multiples," he added.
The company expects to clock a 25% CAGR on its branded business to achieve its revenue target. The company plans to invest in growing its existing brands to strengthen its innovation and technology. The growth philosophy of the company is to invest in IPR and not assets. “Our key focus is on IPR, Brands, create differentiate and customer value,” Lalbhai added.