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Celio hikes stake in Future Group JV to 65%

Raghavendra Kamath  |  Mumbai 

French menswear retailer has increased its stake in an equal joint venture (JV) with Kishore Biyani's 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.

After the rejig of ownership structures last month, Future's newly listed company (FLF) owns 35 per cent stake in the company Future Fashions, the sources said.

The move follows nod from the Foreign Investment Promotion Board (FIPB) allowing 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 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.

First Published: Mon, November 25 2013. 00:29 IST