Ahmedabad-based apparel company Arvind Ltd yesterday sold its 40-per cent stake in VF Arvind Brands to joint-venture partner VF Mauritius for Rs257 crore ($52.8 million).
Arvind had invested Rs5.47 crore in the 40:60 VF Arvind Brands joint venture, which was formed in 2006 with VF Mauritius for marketing products under Lee and Wrangler brands.
"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," Arvind said in filing to the Bombay Stock Exchange.
"In the last financial year, Arvind's share of revenue of the JV was approximately Rs120 crore, which constituted slightly less than 3 per cent of the group's consolidated revenue.
Arvind, which has 21 international and Indian brands in its portfolio, said that it plans to utilise cash received from sale of the JV in reducing its debt.
Arvind also has an equal joint venture with Tommy Hilfiger for India.