Madura Garments, India’s largest branded apparel business, will be split into two separate companies by its owner, the AV Birla Group (AVB). AVB would carve out separate entities for lifestyle and mass brands out of the unlisted company.
The group will unveil MG Lifestyle Brands & Retail Business, a new fashion brands company operating with key brands such as Louis Philippe, Allen Solly and Van Heusen, besides lifestyle retail formats such as Planet Fashion and Trouser Town. SF Jeans, Madura’s denim brand, and the international licensed brand Esprit will also be part of the new entity. MG Popular Brands & Retail Business would operate in the mid-priced-to-mass category with brands like Peter England. Both the new entities will be divisions of AV Birla Nuvo.
Madura Garments is expected to report revenues of round Rs. 600-650 crores in FY 2007, and is currently the leader in the domestic apparel space with annualized growth of 20% in recent years. AVB acquired Madura Garments from UK’s Coats for Rs. 236 crores in 1999. The fashion brands company, which will also include Allen Solly Womenswear and Van Heusen Womenswear, is likely to report a topline of Rs. 450-480 crores, while the standalone Peter England is likely to show up with a Rs. 180 crore-turnover in FY 2007.
Read The Economic Times article.
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