After selling stakes worth Rs 450 crore in two apparel firms - Indian wear brand Biba Apparels and western wear brand AND - Future Lifestyle Fashions has picked up stakes in two footwear firms, Tresmode and Famozi Shoes, and in a designer wear chain called Mineral. Future Lifestyle Fashions has also bought 27.5 % stake in Resource World Exim, a company that sells women's fashion apparel under the brand, Desi Belle and is further believed to be in talks with Delhi-based department store chain Biglife Ritu Wears, Bangalore-based garment chain Coupon and Delhi-based apparel brand Giovani Fashion for buying a stake.
The company is believed to have made handsome returns from the exits in the two brands where it had 22.9 % (AND) and 25.8% (Biba) stake. The five-year-old investments in AND and Biba earned them returns of 24 times and 5.5 times, respectively.
In cases such as Mineral - in which Future has bought a minority stake and which already sells at Central (Future's Lifestyle format) - the idea is to take business to the next level. Since Future Group runs over 150 Big Bazaar stores which sell value-for-money products as well as around 24 Central department stores and 26 Brand Factory discount stores, they provide a captive retail network for the apparel brands.
The new acquisitions also serve as replacement for the spaces that have been exited. While the company has exited AND, a stake in Mineral has filled the gap. The same is true of Biba, which has been replaced with Desi Belle. Interestingly both Mineral and Desi Belle have been set up by former Future executives. While Mineral is headed by Jaydeep Shetty, former head of new business at the group, Desi Belle was founded by Sharmila Nadkarni, the former head of fashion category at Big Bazaar.