After relisting, Biyani eyes stake sale in Biba, AND

After relisting his Future Venture as fast moving consumer

goods company (FMCG) yesterday, retail baron Kishore Biyani is all set to unlock value of two apparel companies under the company’s fold. These are: ethnic wear brand Biba and Anita Dongre’s AND. He is said to be on the lookout for PE investors to crack the deal. The retail major seems to be in a hurry to completely reduce the debt pressure, while turning his Future Venture entity, multi-brand FDI-friendly.

C X Partners, ChrysCapital, TA Associates and General Atlantic Partners are said to be in the race to acquire around 30 percent stake in Biba valued at Rs 1,000 crores. L Capital, an investment arm of French luxury conglomerate LVMH, and the newly floated 500-million dollars (Rs 3,013 crores) private equity house Kedaara Capital, are in the short-list to buy a stake in AND.

After the recent restructuring, the group now has three operational companies — Future Retail, Future Ventures and Future Lifestyle Fashions. Biyani had invested around Rs 40 crores in both these fashion brands almost six years ago. Future Ventures owns 22 percent in AND. The designer’s fashion businesses include AND, Global Desi and Anita Dongre label, which together reported Rs 275 crores revenue from 95 stores.

On the other hand, Biba has 118 standalone stores with Rs 350 crores of annual sales and an operating profit of about Rs 80 crores. Biba, founded by Meena Bindra three decade ago, was created from her line of salwar, kameez and dupattas at affordable price points.