In a significant strategic move, Arvind Fashions Limited announced on Monday its decision to acquire the entire stake held by the Flipkart Group in Arvind Youth Brands Private Limited. The transaction, valued at ₹135 crore, will transform Arvind Youth Brands into a wholly-owned subsidiary of Arvind Fashions.
Consolidating the Youth-Focused Business
The acquisition is a key part of Arvind Fashions' strategy to consolidate ownership of its youth-centric portfolio. Arvind Youth Brands is the entity that houses the popular Flying Machine brand, a denim and casual wear label specifically targeting young Indian consumers. The company stated that this move aligns with its broader vision of strengthening control over this dynamic segment of its business.
Amisha Jain, the Managing Director and CEO of Arvind Fashions, highlighted the successful partnership with Flipkart. She noted that the collaboration over the past five years was instrumental in scaling Flying Machine's presence on online platforms, helping it re-establish itself as a digitally strong brand and emerge as a leading casual wear name in the e-commerce channel.
Future Roadmap and Digital Presence
Despite the ownership change, the business relationship with Flipkart is set to continue. Jain confirmed that Flying Machine will remain available for sale on Flipkart's various platforms even after the completion of this transaction. Furthermore, the brand will continue to expand its digital footprint by being sold through other online channels and portals, ensuring wide accessibility for its customers.
Flying Machine boasts a legacy spanning four decades in the Indian denim market and has been retailing online for more than ten years. Its primary consumer base is the youth demographic across metropolitan areas and tier-II cities, a market the brand has consistently engaged with.
Strengthening the Brand Portfolio
Arvind Fashions manages a robust portfolio of fashion and lifestyle brands, including US Polo Assn., Arrow, Tommy Hilfiger, and Calvin Klein. The integration of Flying Machine as a fully owned subsidiary is expected to allow for more streamlined operations and focused growth strategies for the youth brand. This deal underscores the company's commitment to nurturing and directly steering its key labels in a competitive retail landscape.
