Flipkart has bought the stake inArvind Fashions ’ recently formed subsidiary Arvind Youth Brands which owns the Flying Machine brand.- Arvind Fashions’ board has also approved a rights issue to the tune of ₹400 crore.
- The company has posted a loss of ₹10 lakhs, a huge drop from its last year’s profits of ₹20 crore in the same quarter.
"Flying Machine is a brand that is known in households across India, popular with the youth and synonymous with value and style. Through this investment, we look forward to partnering with the team at Arvind Youth Brands to continue to grow the market for its portfolio of products and enhance the strong brand equity that has been built over the last few decades,” said Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group.
Arvind Fashions also announced its fourth quarter results for the last financial year, where it posted a loss of ₹10 lakhs, a huge drop from its last year’s profits of ₹20 crore in the same quarter.
However, the share price of the company jumped by 5% to ₹178.10 , as the Flipkart investment too came in. The company’s board has also approved a rights issue to the tune of ₹400 crore.
“While COVID has been an unprecedented event which has significantly impacted the entire retail industry, as a leading casual wear company with a portfolio of brands with leading market positions and key capabilities in digital and omni-channel, we expect to gain market-share as business gets back to normal,” said J Suresh, MD & CEO, of Arvind Fashions.
Arvind Fashions has 1,290 stores across India as well as a 10,000 multi-brand outlet presence. Currently, 75% of its stores are operational as the economy is gradually opening post lockdown.
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