The Kishore Biyani-managed Pantaloon Industries has acquired 68 per cent stake in Indus-League Clothing Ltd, which owns lifestyle apparel brands — Scullers and Indigo Nation. Pantaloon picked up the stake from ICICI Ventures for Rs 24 crore.
Mr Sriram Srinivasan and six others who floated Indus-League in 1999 will continue to steer the company's management. The team led by Mr Srinivasan, Draper International and Dalmia Group hold the remaining 32 per cent stake in the company. It is learnt that Draper, which holds close to 10 per cent stake, will sell the shares to Pantaloon and exit the company in the near future.
Speaking to Business Line, Mr Srinivasan said the deal unleashed tremendous synergies for the partners. "Our brands will get significant floor space in all the Pantaloon managed retail formats and will benefit from lower real estate costs that the Pantaloon Group is able to command from the malls," he said. The Indus-League management could deliver brand management skills to Pantaloon, which would help the latter in servicing its 18 apparel brands and labels.
Indus-League will look for doubling its business in the next one year. The scale and it critical mass, which it has garnered through this deal, could lead to increase of Rs 7 crore in monthly revenues. Besides, betting on organic growth of Indigo Nation and Scullers, the company is poised to launch several new brands across the apparel and lifestyle spectrum.
Pantaloon has projected a turnover of Rs 1,200 crore in the financial year 2004-05 and wants to be a significant player in retail, lifestyle brands and real estate domains.