In less than a month of acquiring a strategic stake in the Bangalore-based Indus League by group company, Pantaloon Industries, Biyani has now struck a strategic deal with Planet Sports, a leading sports and fashion retail company to acquire 49 per cent of the company.
The deal has brought internationally acclaimed brands such as Marks & Spencer, Wilson, Puma, Speedo and Converse to Biyani's portfolio.
Planet Sports plans to triple its turnover to Rs 105 crore (Rs 1.05 billion) from the current Rs 35 crore (Rs 350 million) in the next two years.
Pantaloon Retail (India) has in principle agreed to invest Rs 14. 20 crore (Rs 142 million) by subscribing to 20.40 lakh equity shares of Rs 10 each at a premium of Rs 40 a share, aggregating to 49 per cent of the paid-up equity share capital of Planet Sports.
The agreement was signed on Friday in Mumbai between Kishore Biyani and Ved Prakash Sharma, chairman of Planet Sports.
The capital base of the company would increase to up to Rs 30 crore (Rs 300 million) after pantaloon picking up a 49 per cent stake.
Biyani, who has under his belt a number of awards - including the 'Retailer of the Year' and the 'Retail visionary of the Year' awards, said ,"The strategic alliance is going to change the face of branded lifestyle retailing in India.
The access that we will now have of Sharma's retail expertise, as witnessed in South East Asia, will create a landmark in the already booming retail sector."
"We will look at bringing more lifestyle brands through Planet Sports," Biyani added. Pantaloon Retail India has the licensing rights of four international brands UMM (Italian apparel brand), Popeye, Disney and Adults.
A NRI-based in Indonesia, Sharma has been instrumental in bringing some of the leading European and US brands to this part of the world.
Sharma said, "The fact that Planet Sports will now be working in synergy with Pantaloons will give a leverage and a strategic advantage to both the companies."
Pantaloon is already one of the larger players in retail and owns retail chains with the names of Pantaloons, Big Bazaar, Food Bazaar and Gold Bazaar. It also has the Central chain of seamless shopping malls.
Planet Sports is the sole franchisee of the prestigious UK-based retailer Marks and Spencer.
It also has the exclusive distribution and licensing rights for well-known brands including Wilson, Puma, Speedo and Converse sports brands. Planet Sports has six Marks and Spencer and 25 Planet Sports stores in the country.
