Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Grasim in talks to buy Van Heusen, Louis Phillipe brands - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Dec 17, 1999

    Grasim in talks to buy Van Heusen, Louis Phillipe brands

    The Aditya Birla group flagship Grasim is in talks with Viyella plc (UK) to acquire Van Heusen, Louis Phillipe and Allen Solly clothing brands in India.

    These three labels together claim a 40% share in the premium segment of the branded market. In India these brands are controlled by Madura Garments, a division of Madura Coats.

    The sale of the brands if it were to go through would be suicidal for Madura Coats. The garments division contributes almost 25% of the Rs.11 bn turnover and approx. 50% of the pre–tax profit. It has been growing at 40% per annum.

    The other division that contributes to the profit is the threads division. This division has been hit by higher excise incidence of 17.25% on threads as against 16% for fabrics. The only other player in the organised sector is Vardhman Spinning. The unorganised sector, which has been successful in evading excise duty almost 50% of the market.

    The third division: the fabric division is having a tough time. It is supposedly a loss making division. It had a labour problem in the current year, which has been resolved with an interim relief to the workers. The bulk of Madura Coats’ labour force of 12,000 workers is in this division.

    Perhaps the only benefit to Madura Coats could be that they would launch new products in the lower segments. The three brands, which remain, viz. Peter England, Byford and SanFrisco (for trousers) have been immensely successful. The company could be looking at a strategy to concentrate on the middle and lower segments.

    As far as Grasim goes, the company would benefit immensely since these are established brands. The company has not been able to make an impact in the branded segment despite having the ‘Wall Street’ brand and having access to 200 exclusive outlets and about 13,000 multi–brand outlets. It could easily refurbish the brands and re–launch them.

    The most important development would however be: a dramatic change in image. This move would bring instantly–recognisable, top–of–the–shelf brands into a group whose focus has been on commodities.



    Equitymaster requests your view! Post a comment on "Grasim in talks to buy Van Heusen, Louis Phillipe brands". Click here!


    More Views on News

    Grasim: Starts New Fiscal on a Solid Note (Quarterly Results Update - Snapshot)

    Aug 11, 2016

    Grasim's revenues and profits report strong growth during the quarter ended June 2016.

    Grasim: Profits zoom on higher volumes & price recovery (Quarterly Results Update - Snapshot)

    May 9, 2016

    Grasim's revenues and profits report stellar growth during the quarter ended March 2016.

    Grasim: Higher volumes and realisations boost profits (Quarterly Results Update - Snapshot)

    Feb 4, 2016

    Grasim's revenues and profits report impressive growth during the quarter ended December 2015.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 22, 2017 (Close)


    • Track your investment in GRASIM IND. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Compare Company With Charts