Future Lifestyle Fashion (FLFL), part of Kishore Biyani-led Future Group, today said it has divested minority stakes in ethnic wear firm Biba Apparels and designer Anita Dongre-owned AND for Rs 450 crore.
"We are exiting mature investments. Both the investments were made more than five years ago. We exit investments when they become large. Total receipts from divestment of Biba and AND was Rs 450 crore," Future Group founder Kishore Biyani told PTI.
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While Biyani refused to give the break-up of valuations of investments in Biba Apparels and AND Designs, in an investors' update the company has stated that it made a profit of Rs 190 crore from sale of stake in Biba. FLFL had 22.9 percent stake in AND Designs and 25.8 percent stake in BIBA Apparels.
The Future group had first acquired a 6.5 percent stake in Biba in 2007, which was gradually increased to 25.8 percent in 2011. While FLFL has exited from two investments, it has also picked up minority stakes in three companies. These are footwear firms Tresmode and Famozi shoes and Mineral, a designer label from Priyadarshini Rao.
"These investments will mature in 4-5 years," Biyani added. During the 2013-14 fiscal's second quarter ended September 30, FLFL reported net profit of Rs 108.90 crore and net sales of Rs 690.10 crore. The company did not have operations in July-September quarter of the previous fiscal, 2012-13, for comparison. Future Retail demerged its fashion business in November 2012 and formed a new company called Future Lifestyle Fashions (FLFL). FLFL has a portfolio of over two dozen fashion and lifestyle brands.
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