V-Mart buys 74 stores, assets of Unlimited

Hyderabad V-Mart Retail Limited, a fashion retailer has signed an agreement with Arvind Lifestyle Brands, a wholly owned subsidiary of Arvind Fashions Limited (AFL) to acquire all the assets of Unlimited's retail business. Unlimited operates a chain of 74 value fashion retail stores across South and West India and sells fashion apparel and accessories for men, women and children at affordable prices.

As part of the agreement, V-Mart will buy the assets of all stores, warehouse, inventory as well as the store brand Unlimited at their book value, with an estimated outlay of about Rs 150 cr at closing, and certain contingent payments based on certain milestones achieved in these stores over next few years, post the acquisition.

Through this purchase, V-Mart will be stepping into South India and helping customers meet their fashion aspirations through its vast array of quality products at affordable prices. The acquisition fits well with V-Mart's cluster-based expansion strategy and shortens the time-span required for geographical expansion of this scale in a new big market.

Lalit Agarwal, chairman and managing director of V-Mart Retail Ltd said: "V-Mart is one of the strongest players in northern and eastern India and is a leading value retail player for the masses in the fashion segment, primarily operating in Tier 2, 3 cities. We are proud to bring the Unlimited stores within our family umbrella. With this acquisition, we will have another 74 stores in our portfolio catering to the fashion needs of families in the southern and western markets of India."