French menswear retailer Celio has increased its stake in an equal joint venture (JV) with Kishore Biyani's Future Group to 65 per cent, as part of its plans to become 100 per cent owner of the company, according to sources in the JV company.
The move follows nod from the Foreign Investment Promotion Board (FIPB) allowing Celio to raise its stake in the company to 100 per cent in July. Celio plans to invest Rs 40 crore to open new stores.
"Over a period of time, Celio will become 100 per cent owner and Future Group will exit," said the sources. The financial details of the transaction are not known.
However, Biyani, founder and CEO of Future Group, denied any restructuring. Currently, Celio has 38 standalone stores and 130 shops in the country. Founded in 1985 by Marc and Laurent Grosman, the brand has 1,000 stores across the world. "Celio has a long-term view of the business and growth potential of the country. That is why, it is going for 100 per cent stake," said the sources. According to sources, Celio co-founder Marc Grosman met Biyani and his team in Mumbai over the weekend.