Aditya Birla Group branded apparel businesses to be moved into one unit

Mumbai: Aditya Birla Nuvo Ltd said it planned to consolidate all of the Aditya Birla Group's branded apparel businesses into Pantaloons Fashion & Retail Ltd, another listed firm in the $40-billion conglomerate. The group's various branded-apparel businesses will be split off from Aditya Birla Nuvo and other units and then consolidated into Pantaloons Fashion, which will then be renamed Aditya Birla Fashion & Retail Ltd (ABFRL), according to a company statement.

"The consolidation will unlock value for the shareholders by giving them an opportunity to participate in the promising fashion space directly through ABFRL," said Kumar Mangalam Birla, chairman of the Aditya Birla Group, in the statement. Under the restructuring process, shareholders in Aditya Birla Nuvo will get 26 new shares of Pantaloons Fashion for every five of their shares in recompense for branded apparel unit Madura Fashion.

Holders of unlisted shares in Madura Garments Lifestyle Retail Co Ltd will get seven new equity shares of Pantaloons Fashion for every 500 shares they hold after the Madura Lifestyle brand splits off from Madura Garments. Preference shareholders in Madura Garments will get one new common share in Pantaloons Fashion for each preference share held.

"This move to bring all the branded apparels businesses under one roof will accelerate growth," said Pranab Barua, business director of apparel and retail business at the Aditya Birla Group, in the statement. The transaction, which is subject to regulatory approval, is expected to be completed in the next six to nine months, the company statement said on Sunday.