Bangalore: The largest branded apparel business and part of AV Birla Group (AVB), Madura Garments has been decided to split into two separate companies for lifestyle and mass brands out of the unlisted company, industry sources said here on January 17.
The group is poised to unveil MG Lifestyle Brands & Retail Business, a new fashion brands company operating with key brands like Louis Philippe, Allen Solly and Van Heusen besides lifestyle retail formats such as Planet Fashion and Trouser Town.
The SF Jeans, which marked Madura’s denim foray, and the international licensed brand Esprit will also be part of this new entity, while other company, MG Popular Brands & Retail Business, would operate in the mid-priced-to-mass category with brands like Peter England.
However, both the new entities will be divisions of AV Birla Nuvo and the move is aimed at putting in place strategies for growth in the next 5-10 years to focused brand building and to be on road for profitable aggressive growth.
Madura Garments is expected to report revenue of round Rs 600-650 crore in FY’07, and is currently a clear leader in the domestic apparel space with annualised growth of 20 percent in recent years.
The fashion brands company, which will also include Allen Solly Womenswear and Van Heusen Womenswear, is likely to report a top line of Rs 450-480 crore, while the standalone Peter England is likely to show up with Rs 180 crore turnover in FY’07.
Also the latest move is in sync with the market dynamics and AVB’s own retailing plans besides accelerating the overall growth of the branded apparel business.