Future Lifestyle Fashions to acquire up to 29.9% stake in Koovs
By Chanda Kumar | July 05, 2018
FLFL’s strong retail presence, backed by owned brands coupled with Koovs online strategy, will help reach more customers and create value for all stakeholders.
Koovs plc, the leading e-commerce fashion business, announced that it has reached a conditional agreement with Future Lifestyle Fashions Limited (FLFL), part of Future Group to subscribe for up to a 29.9% stake in Koovs subject to regulatory and procedural approvals. Lord Alli, Chairman of Koovs, said: “This marks a giant step forward in the Koovs' journey to win the e-fashion market in India. FLFL with its leadership position as an integrated branded fashion player and the Koovs brand and technology platform are an unbeatable combination. This investment will bring enormous benefits to our customers and partners as well as significant value for all shareholders.”
Kishore Biyani, Group CEO, Future Group, said: “In FLFL we have successfully created, grown and invested in leading Indian fashion brands and are excited to partner with Koovsto continue building on FLFL’s ambition. This investment would complement the existing value chain for FLFL as an integrated branded fashion player. FLFL’s strong retail presence, backed by owned brands coupled with Koovs online strategy, will help reach more customers and create value for all stakeholders”
Future Group owns over 60 brands, operates close to 2,000 retail stores spanning over 22 million square feet and attracts footfalls of over 500 million annually. Future Group also has one of India’s most unique digital payment platforms, Future Pay, which has an active user base of over 6.5 million and is growing rapidly. Future Group sells about 300 million garments per annum in volume making it one of the top 10 fashion apparel companies in the world.
Future Lifestyle Fashions Limited owns and markets about 30 fashion brands through exclusive brand outlets, department stores and multi brand outlets, as well as company-operated chains such as Central and Brand Factory. FLFL collectively operates more than 400 stores spread over 6 million square feet of retail space and is a unique player in the fashion industry due to its integrated “design to distribution” model and presence across all key segments within the fashion industry. With support from a large retail channel, FLFL also leverages its strong portfolio of own brands that contribute to approximately 40% of total sales, thereby creating a distinctive, integrated fashion play. Led by Lee Cooper, the top six ‘power brands’ contribute approximately 60% of FLFL’s revenue from own brands. FLF has also successfully invested in fashion brands like BIBA and in the past and currently holds investment in various fashion brands like Clarks, Turtle, Mineral, Celio etc.