Arvind sells VF Arvind Brands stake

“The divestment was done in terms of the JV agreement in which VF had the right to acquire shares from Arvind at the end of five years,” it said.

While VF was the majority partner with 60 per cent stake in the JV,Arvind controlled the remaining shares.

Commenting on the development,Arvind Ltd Director and CFO Jayesh Shah said: “We had a rewarding association with VF. In the last financial year our share of revenue of the JV was approximately Rs 120 crore which constituted slightly less than three per cent of our consolidated revenue.”

VFABPL has been engaged in marketing products under the Lee and Wrangler brands.

He said Arvind Ltd plans to utilise the cash flow from the stake sale in VFABPL to reduce debt.

Earlier,Arvind Ltd Chairman and Managing Director Sanjay Lalbhai stated that the company which has over Rs 2,000 crore of debt is aiming to bring it down below that level this year and achieve a debt equity ratio of 1:1.

Arvind,which has presence in apparel brands and retail space,has 21 international and Indian brands in its portfolio.

It is expecting a revenue of Rs 1,200 crore this financial year. It also has a 50:50 joint venture with Tommy Hilfiger for India.

Shares of Arvind Ltd closed the day at Rs 106.70 per scrip on the BSE,down 0. 47 per cent from the previous close.