Provogue India has sold its retail chain business, Promart, to VEMB Lifestyle Pvt Ltd and Apple Group of Companies. The two companies have come together to acquire the brand name from Provogue to expand their footprint in India. Promart is a multi-brand household retail chain and value format brand which offers premium products at discounted rates under one roof.
Post this acquisition, Promart Retail India Pvt Ltd has launched its retail store in Ahmedabad. The store will offer an extensive range of apparel, accessories, bed linen, home furnishings, kids’ toys and electronics.
Commenting on the development, Punit Agarwal, CEO, Promart Retail India Ltd, and a franchisee of German womenswear brand Marc Cain in India, said, “We have bought the intellectual property (IP) and assets from Provogue to take the business forward. Since the retail sector looks very promising, we will be targeting the Tier II, Tier III and Tier IV towns, where people are becoming more and more fashion conscious. Our aim is to bring a whole new dimension and revolutionize the fashion industry.”
Ashish Garg, Director and CFO, Promart Retail India Ltd, added here, “Our key focus area for the business will be inventory management, which will not only bring down our costs drastically but will enable us to achieve healthy profit margins. That said, we plan to achieve a healthy growth trajectory by infusing Rs 150 crore by 2012-13.”
Promart plans to expand operations in Surat, Baroda, Rajkot, Bhavnagar, Jamnagar and Mehsana in the next six months as part of their overall growth strategy.