Last updated : July 24, 2021 10:00 am
This acquisition of 74 ‘Unlimited’ stores from Arvind Lifestyle Brands Ltd. enables V-Mart to establish a quick and wide footprint in southern and western India, thus debuting its presence in these untapped markets.
Through this development, V-Mart will be debuting into South India and helping customers meet their fashion aspirations through its vast array of quality products at affordable prices.The move also fits well with V-Mart’s cluster-based expansion strategy and dramatically shortens the time-span required for geographical expansion of this scale in a new big market.
Commenting on the transaction, Mr Lalit Agarwal, Chairman & Managing Director of V-Mart Retail Ltd said, “V-Mart is one of the strongest players in northern & eastern India and is a leading value retail player for the masses in the fashion segment, primarily operating in Tier 2, 3 cities. We have always believed in cluster philosophy and as we were not present in the southern India & as being the focused value retailer we can strive to do better. This has compelled & motivated us to grab this opportunity.We are proud to bring the ‘Unlimited’ stores within the umbrella of V-Mart family, which was part of Arvind Fashions. With this acquisition, we will have another 74 stores in our portfolio catering to the fashion needs of families in the southern and western markets of India. At V-Mart we have been opening around 50 stores every year, and look forward to maintaining this growth trajectory in the times to come.”
“The business had been turned around by Arvind Fashions, and fits well with our strategy of expanding our regional presence as well as adding capabilities in select categories. With this transaction, V-Mart will now operate 356 stores across 25 states with a total area of 30.8 lacs sqft,” added Mr Agarwal.
Speaking on this divestment, Shailesh Chaturvedi, Chief Executive Officer, Arvind Fashions, said, “We are delighted to find a strong home in V-Mart for Unlimited. We had created a scalable format with significant product capabilities in value retail, which has a large potential. However, in line with our strategy of focusing on our 6 high conviction brands, we decided to exit the business. This would help us put capital behind growing our six focus brands, helping generate significant shareholder value.”
The completion of the transaction is subject to necessary approvals and customary closing conditions. Metta Capital acted as an exclusive financial advisor and Saraf and Partners acted as legal advisor to V-Mart for this transaction.