If media reports are to be believed then British denim brand Pepe Jeans is planning to sell its 100 per cent stake in the India unit. It seeks Rs. 2,000 crores for the same.
It is being said that Indian apparel manufacturers Aditya Birla Group and Arvind Brands have been contacted for the deal. However, any updates from both of these companies have not come yet.
Kavindra Mishra, Managing Director of Pepe Jeans India has termed such reports a mere rumour while talking to a business newspaper.
According to Mishra, the company has initiated steps to evaluate options so that it can raise capital to pursue its growth strategies in the Indian market.
At least 1,000 multi-brand outlets and more than 200 franchise stores retail Pepe Jeans products in India. Last year, reports surfaced that the fashion retailer is planning to increase its store count in the country by opening up 50 new stores.
The denim brand was founded by Indian-origin siblings Arun, Nitin and Milan Shah in London in the 1970s who began selling the jeans at a weekend stall. Pepe Jeans currently retails its Hackett brand, owned by Pepe Jeans Group internationally, and in India through a joint venture with Aditya Birla Group.
Notably, Pepe Jeans India had posted a 16.3 per cent growth in its net profit to Rs. 49.21 crores in the financial year 2017. Its sales grew by 21 per cent to Rs. 424.06 crores.