Arvind Ltd has divested its 40 per cent stake in VF Arvind Brands Pvt Ltd (VFABPL) to VF Mauritius for Rs 257 crore.
VFABPL, which is engaged in marketing products under the brands Lee and Wrangler, was formed in September 2006 with 60:40 shareholding between VF Mauritius and Arvind. Arvind had invested Rs 5.47 crore in the capital of the joint venture.
The divestment was done in terms of the joint venture agreement in which VF had the right to acquire shares from Arvind at the end of five years.
Mr Jayesh Shah, Director & CFO, Arvind, said that in the last financial year, Arvind's share of revenue in the joint venture was approximately Rs 120 crore. The company plans to utilise the sale value to reduce debt.
Arvind has 21 international and Indian brands with a turnover of over Rs 1,200 crore and is growing at over 40 per cent. It also has a 50:50 joint venture with Tommy Hilfiger in India.