Aditya Birla Nuvo Limited merges all apparel firms
Shareholders in Aditya Birla Nuvo will get 26 new shares of Pantaloons Fashion
By : DC Correspondent
Update: 2015-05-03 23:46 GMT
Mumbai: The competition in the fast growing branded apparels industry has got more competitive as the Aditya Birla Nuvo Limited (ABNL) on Sunday created India’s largest pure-play branded apparels company by merging all its branded apparel businesses namely Pantaloons Fashion & Retail Limited (PFRL) and Madura Garments Lifestyle Retail Company Limited (MGLRCL), a subsidiary of ABNL into one entity named Aditya Birla Fashion and Retail Ltd in an all-share deal.
The new entity will have a turnover of Rs5,290 crore and a retail network of 1,869 retail stores. Aditya Birla Group chairman Kumar Mangalam Birla said, “This consolidation will create India’s largest pure-play fashion & lifestyle company with a strong bouquet of leading fashion brands and retail formats. This move brings India’s number one branded menswear and womenswear players together.”
He also saw this restructuring unlocking value for the shareholders. After the merger shareholders of ABNL will get 26 new equity shares of PFRL for every five equity shares held in ABNL whilst shareholders of MGLRCL will get seven new equity shares of PFRL for every 500 equity shares held in MGLRCL. The organised retailing market in India is expected to grow at a robust CAGR of 18 per cent over next few years. The branded apparel industry in India is estimated at over Rs 50,000 crore.