Arvind Lifestyle sells Unlimited stores to V-Mart

Arvind Lifestyle Brands Ltd (ALBL), a wholly owned subsidiary of , has agreed to sell assets of its Unlimited retail business to V-Mart Retail. Following this transaction, will enter the markets in southern India.

ALBL will sell fixed assets, lease deposits, warehouses, inventory and other current assets of the 74 retail stores and warehouses at book value. In return, it will get an estimated Rs 150 crore upon the closure of the transaction. Actual consideration may vary depending on the actual purchase price on the transaction date.

In addition, V-Mart Retail may receive contingent payments based on certain milestones to be achieved over the next few years following the acquisition of the assets.

"In line with our strategy of focusing on our six 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,” said Arvind Fashions CEO Shailesh Chaturvedi.

V-Mart Retail chairman Lalit Agarwal said, “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 lakh sq ft.”

The transaction is subject to necessary approvals and customary closing conditions.