- Blackstone has acquired about 6 percent stake in Future Lifestyle Fashion, the flagship business of Kishore Biyani-owned Future group, for about Rs. 545 crore.
- Kishore Biyani and his family own 53.43 percent of FLF through different entities.
World’s biggest equity firm, Blackstone has acquired about 6 percent stake in Future Lifestyle Fashion, the flagship business of Kishore Biyani-owned Future group, for about Rs. 545 crore.
According to National Stock Exchange (NSE), Promoter entity of Future Lifestyle Fashion, Ryka Commercial Ventures Private Limited has sold 11.6 million shares of Future Lifestyle Fashion (FLF) to Blackstone TacticalBlackstone Tactical Opportunities Fund, BTO FBI III, in a secondary market transaction. The transaction value was Rs 466.25 per share.
Recently, The retailer which owns Central and Brand Factory retail chains had said that it will raise about Rs. 300 crore from AION Capital Partners through preferential allotment of shares.
Kishore Biyani and his family own 53.43 percent of FLF through different entities such as Ryka Commercial Ventures, Central Departmental Stores and Future Enterprises among others. PremjiInvest and L. Catterton together own around 17 percent, L&T Mutual Fund owns 4 percent and LIC owns 6.5 percent stake among other investors.
NBB had reported last week that Biyani led firm has struck a deal with Blackstone, the world’s largest private equity firm and stitched up a $250 million investment. FLF is one of the subsidiaries of the parent company Future Group. The primary flow of capital will be through structured debt and a combination of equity which will fund the capital expansion of Biyani’s deep-discount retail format Brand Factory, which is based on the US retailer TJ Maxx.
Expansion of Future Group
A big chunk of revenue of Future Group comes from food and grocery retailing but the apparel and lifestyle segment is a higher margin business for it. FLF recorded a growth of 27 percent. The firm also manages big brands such as Indigo Nation and Lee Cooper, through more than 300 stores across 7.2 million square feet of retail space.
The fashion arm has sold more than 30 crore garments last year and the company is moving on the way of becoming the country’s biggest clothing retailer by volume. The company in its annual report said that it aims to increase market share by 450-500 which indicates the fact that Indian fashion and lifestyle market is getting competitive.
Growth Of Fashion Market in India
India has been attracting a host of global apparel brands such as Gap, H&M and Uniqlo relying on the youth which is embracing the western style of clothing.
FLF is the flagship fashion business of Future Group. It has more than 300 stores in more than 90 cities, taking over a 5.7 million sq ft. of retail space. It also owns and markets leading brands through Central and Brand Factory, exclusive brand outlets and other multi-brand outlets. It was created after the demerger of lifestyle fashion businesses of Future Retail and Future Ventures.