Arvind Fashions to buy Flipkart’s stake in Flying Machine unit for US $ 15 million

Arvind Fashions has announced that it will acquire Flipkart India’s entire 31.25% stake in its denim-focused youth brands unit, which operates the Flying Machine label, in a transaction valued at Rs. 135 crore (US $ 15.01 million).

The business is housed under Arvind Youth Brands Private Limited, which runs Flying Machine, a well-established denim and casualwear brand with a nationwide presence across both wholesale and retail formats. The company reported a turnover of Rs 432.16 crore (US $ 48.07 million) for the financial year ended March.

As part of the transaction, Arvind Fashions will acquire one equity share with a face value of Rs 10, along with 5.9 million compulsorily convertible preference shares priced at Rs 100 each. Following the completion of the deal, Arvind Fashions, together with its wholly owned subsidiary Arvind Lifestyle Brands Limited, will hold full ownership of the business.

Flipkart, which is owned by US retail major Walmart, had invested Rs. 260 crore (US $ 28.92 million) in the youth brands unit in July 2020. The exit is expected to simplify governance and decision-making for Arvind Fashions by consolidating strategic control over the brand.

The divestment also reflects Flipkart’s broader strategy of rationalising its investments in India and reallocating capital towards its core e-commerce and logistics platforms. The move aligns with the Walmart-backed company’s recent efforts to prune minority stakes in non-core businesses as it seeks to improve capital efficiency and sharpen its focus ahead of a potential initial public offering.