Press Releases
April 30, 2012
Future Group Demerges Pantaloons Retail Format from Flagship Company Aditya Birla NUVO to Invest in Pantaloons Format
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Mumbai, April 30, 2012: Future Group today announced the intent to execute a full demerger of Pantaloons retail format from Pantaloon Retail India Limited [PRIL]. On completion of the demerger process, subject to necessary and statutory approvals, the demerged entity will be automatically listed in the National Stock Exchange and The Stock Exchange, Bombay.

The Pantaloons format, launched in 1997, has over the years become the leading fashion retail format in the country with 65 stores in 35 cities, along with the reverse logistics chain Pantaloons Factory Outlet that has 21 stores. These operate through a combined retail space of over 2 million square feet.

The business is expected to post a turnover of around Rs 1700 crore by the end of the financial year in June 2012. In the medium term, the format is expected to add 20 stores annually and reach out to a larger customer base in leading cities across the country.

Future Group also announced that the demerged entity, subject to necessary and statutory approvals, will invite an investment from Aditya Birla Nuvo Limited [ABNL]. ABNL will subscribe to debentures amounting to Rs 800 crore issued by PRIL. On completion of the demerger process, the debentures will convert into equity in the demerged entity of the Panatloons format. The existing shareholders of PRIL, including its promoters will continue to own shares in the demerged entity. Post demerger, the total debt of Pantaloon Retail will reduce by Rs 1600 crore

Commenting on this development, Mr. Kishore Biyani, Founder and Group CEO, Future Group said, “We are honored to be associated with India’s pre-eminent and among the most respected business houses. We always had a great admiration and respect for the businesses developed by Madura Garments. This marks a unique coming together of brands and enterprise that will create significant value for customers, suppliers and all stakeholders.”

Mr. Rakesh Biyani and Mr. Kailash Bhatia will continue to manage the business. A Fashion Council, bringing in the leadership teams of Madura Garments and Future Group will aid and advise the management with the objective to fully leverage the strengths of Madura Garments and Pantaloons. Madura Fashion & Lifestyle is defined by its brands — Louis Philippe, Van Heusen, Allen Solly, Peter England and People — that personify style, attitude, luxury and comfort. These brands will join the reach, distribution and customer loyalty enjoyed by Pantaloons format across the country.

The Board of Directors of ABNL and PRIL has in-principally approved th

For details, visit www.futuregroup.in.