Future Venture picks up 33% stake in KFC Shoemaker
This is the second investment by the firm in the footwear business. It had earlier put money in Clarks Future Footwear, a 50:50 JV with UK’s C&J Clark International.
KFC Shoemaker is primarily engaged in the business of sourcing footwear from domestic as well as foreign suppliers and undertakes retail sale of leather shoes/ footwear/ bags under the brand name Tresmode and Solvoga. It also plans to open its exclusive stores as well as shop-in-shops within departmental and shoe chain stores in the Middle East and South East Asia and other emerging markets.
Its distribution channel comprises of Trèsmode stores in addition to shop-in-shops within outlets run by Shoppers Stop, Central, Pantaloon and Reliance Retail across the country. The firm had revenues of Rs 25.89 crore for the year ended March 31, 2013 as against Rs 21.52 crore in FY12.
On completion of the investment, KFC Shoemaker would be an associate of FVIL. On approval of the on-going demerger process of FVIL, KFC Shoemaker will be part of investment of the new company Future Lifestyle Fashion Limited.
Aditya Birla Finance (ABFL) advised KFC Shoemaker on the deal with Future Ventures.
Kishore Biyani is consolidating the fashion retailing business of the group under a new listed entity in a move aimed to reduce debt load on flagship Pantaloon Retail India and unlock value. Pantaloon Retail and Future Ventures, the two public listed group firms, will demerge their fashion businesses into Future Lifestyle Fashions Ltd.
FVIL is a public listed investment cum operation firm for various consumer brands across fashion, food and retail categories. Some of its investments include Biba Apparels, Indus-League Clothing, Indus Tree Crafts and Amar Chitra Katha among others.