Future Ventures fashion spin-out buys 27.50% stake in Desi Belle
Future Lifestyle Fashions (FLF), the listed fashion retail unit that spun out of India’s Future Ventures, has acquired a 27.50% stake in the company behind the Desi Belle womenswear label.
In a regulatory filing, FLF said it had bought the minority stake in Resource World Exim Private Limited. Financial terms were not disclosed.
Resource World sells "aspirational affordable fashion" through stores in the Central chain of malls owned by the Future Group. It has a presence in 12 cities across India, including tier two cities such as Jaipur and Surat.
Last year FLF paid INR5.5 million for an 11% stake in Eclat Lifestyle, which runs the Famozi footwear business.
FLF was formed through the demerger of the lifestyle fashion businesses of Future Retail Limited and Future Ventures India. Singapore-based Arisaig Partners held a 7.52% stake in the company as of the quarter ended September 2013.
Future Group's holdings in apparel companies like BIBA and AND Designs were transferred to FLF and sold last year.
In September 2013, it divested a 25.8% stake in BIBA Apparels, selling its INR420 million investment for INR2.35 billion ($37.7 million) to Warburg Pincus and Faering Capital. The exit was valued at 15x estimated EBITDA for the 2014 financial year, generating a 6x money multiple.
Future Group sold its 22.9% holding in AND Designs to General Atlantic in November for INR1.45 billion, 24x the original INR60 million investment. The deal was valued at 15x 2014 projected EBITDA.
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