Aditya Birla Nuvo Ltd owned Madura Garments is likely to be split into two with the birth of AV Birla group’s Birla Retail business.
Insiders have leaked that Madurga Garments will be split into two – MG Lifestyle Brands and Retail Brands to be under a new entity. The new entity will have Louis Phillpie, Van Heusen and Allen Solly. While Planet Fashion, Peter England and Trouser Town will go under MG Lifestyle Brands. Aditya Birla Nuvo will be the holding company for both the brands. S F Jeans, which marked the entry of Madura into Jeans and denim will also go under the new entity.
It is reliably learnt that MG Lifestyle maybe hived off as a separate company and listed on the exchange few years later. In short, this whole exercise is to benefit the Birla Retail venture and not the existing shareholders of Aditya Birla Nuvo from where the money and resources will be sucked.