Arvind Fashions Exits Sephora India To Focus On Core Business

Arvind Fashions Ltd. said on Friday it ended ties with the LVMH-owned beauty chain Sephora after eight long years to focus on the core apparel business.

The casual and denim player has sold the beauty brands business to Reliance Retail Ventures Ltd. for Rs 99 crore and intends to utilise the proceeds to invest in its brands and repay debt, according to a regulatory filing.

"This transaction will help Arvind Fashions put capital behind growing its five high conviction brands and accelerate the journey towards higher free cash flow and return on capital employed," said Shailesh Chaturvedi, chief executive officer, Arvind Fashions, in a statement.

With this sale, Arvind Fashions will emerge as a pure play branded fashion company and will further sharpen its focus on profitably growing its five marquee brands—U.S. Polo Assn., Tommy Hilfiger, Arrow, Flying Machine and Calvin Klein.

Arvind Beauty Brands Retail, which includes Sephora, contributed Rs 337 crore to Arvind Fashion's fiscal 2023 revenue, accounting for about 7.6% of the total. Net worth of this business stood at Rs 10.6 crore in FY23, which comprised a meagre 1% of the consolidated net worth of the company.

Metta Capital acted as the exclusive financial advisor and Anagram Partners acted as the legal advisor to Arvind Fashions for this transaction.