Apparel major Pantaloon Industries Ltd on Tuesday picked up the entire 68 per cent stake of ICICI Venture Fund in the Bangalore-based branded attire maker Indus League Clothing Ltd for a consideration of Rs 24.09 crore. This is the first ever acquisition in the textile space since the end of the quota ‘raj’.However, Indus League will continue to be a separate legal entity and no major changes are expected in the organisational and management structure, said company Managing Director Sriram Srinivasan. With this move, the Rs 85-crore Indus League will have a strategic alliance with the Pantaloon Knowledge Group, he added.Pantaloon has also informed the Bombay Stock Exchange that it has given in-principle approval for a proposal to invest to the extent of Rs 24.09 crore to acquire 1,18,65,722 equity shares amounting to 68.29 per cent stake in Indus League Clothing Ltd from ICICI Venture Funds Management Company Ltd subject to approval of the shareholders.Srinivasan said, “This is expected to give Indus League and its brands — Indigo Nation and Scullers, a larger presence and faster growth in the highly competitive garment retail space.” The company is planning to introduce more new brands in several categories in the near future including kid’s wear, innerwear, sportswear etc.Currently Indus League has retail presence in South and West, while Pantaloon has a nationwide presence. through its large retail formats like Central and Big Bazaar which will be leveraged by the company to enter the North and Eastern parts of the country. It will also get larger floor spaces in all Pantaloon and Central concept stores across the country along with access to manufacturing capabilities of Pantaloon.
