India: Flipkart picks up minority stake in Arvind Youth Brands for $34.6m

FILE PHOTO: The logo of Flipkart is seen on the company's office in Bengaluru, India, May 9, 2018. REUTERS/Abhishek N. Chinnappa/File photo

Flipkart Group has bought a minority stake in Arvind Fashions Ltd’s (AFL) recently created subsidiary Arvind Youth Brands for 260 crore. The company, which owns denim brand Flying Machine, plans to build the brand online and in India’s smaller markets.

The four-decade old Flying Machine brand has been selling on Walmart-backed Flipkart and Myntra for over six years.

“Through this investment, the Flipkart Group and Arvind Fashions will work collaboratively to identify opportunities and synergies to innovate and develop products with strong value propositions at attractive price points,” Arvind Fashions Ltd said in a filing to the exchanges on Thursday.

Arvind Fashions manages international and local fashion apparel brands in the country such as US Polo Assn., Arrow, GAP, Tommy Hilfiger, Flying Machine, Aeropostale, The Children’s Place and Ed Hardy. It owns and runs the value fashion retail chain, Unlimited; apart from a partnership with beauty retailer Sephora for its India business.

“The partnership with the Flipkart Group will help us accelerate our online growth strategy as we focus our efforts on developing an omni-channel retail approach for Arvind Youth Brands and Flying Machine,” J. Suresh, managing director and chief executive officer, Arvind Fashions said.

Suresh said Flipkart and Myntra will be the brand’s preferred online partners, even as it continues to grow offline sales through channels like exclusive brand stores, department stores and multi-brand stores.

Flipkart will leverage the brand’s popularity that has over the years moved to India’s smaller cities and expand its presence on its platform with value price points for shoppers in that segment.

In a separate filing to the exchanges earlier in the day, Arvind Fashions Ltd., said the company and its wholly owned subsidiary, Arvind Lifestyle Brands Limited, have each signed definitive agreements to transfer the wholesale trading and the retail trading business in “Flying Machine” brand to a wholly owned subsidiary, Arvind Youth Brands Private Limited.

For 2018-2019, Flying Machine brand, under Arvind Fashions Ltd., recorded a standalone turnover of Rs365 crore.

In 2017, fashion retailer Myntra, part of the Flipkart Group, won the rights to manage Spanish fashion brand Mango’s offline stores in India, as well as sell the brand exclusively on its online marketplace.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.