Arvind Fashions Ltd has announced that it will acquire a 31.25% stake held by Flipkart

Arvind Fashions Takes Full Control of 'Flying Machine'; Buys Out Flipkart’s Stake for ₹135 Crore

BENGALURU: Leading lifestyle and fashion retailer Arvind Fashions Ltd (AFL) announced on Monday that it has signed a definitive agreement to acquire the entire 31.25% stake held by the Flipkart Group in Arvind Youth Brands Private Limited (AYBPL).

The deal, valued at ₹135 crore, will see AYBPL—which owns and operates the iconic denim brand Flying Machine—become a wholly-owned subsidiary of Arvind Fashions.

Transaction Details

According to the regulatory filing, the acquisition involves:

• Price: ₹135 crore.

• Shares: 1 equity share of ₹10 and 58,95,852 Compulsory Convertible Preference Shares (CCPS) of ₹100 each.

• Timeline: The transaction was expected to close by December 29, 2025.

Strategic Rationale

This move marks the end of a five-year partnership that began in July 2020, when Flipkart (owned by Walmart) invested ₹260 crore into the youth-focused unit. For Arvind Fashions, the buyout is a strategic step toward portfolio rationalization. By gaining 100% control, the company aims to:

1. Simplify Decision-Making: Faster execution of brand strategies without needing minority shareholder consensus.

2. Omnichannel Growth: While the partnership helped Flying Machine become a digital-first leader, AFL now plans to integrate the brand more deeply across its physical retail and third-party digital channels.

3. Financial Consolidation: AYBPL reported a turnover of ₹432.16 crore for the fiscal year ended March 31, 2025.

Leadership Perspective

Amisha Jain, Managing Director & CEO of Arvind Fashions Ltd, emphasized that the split is amicable and strategic.

"Our relationship with the Flipkart Group will continue, ensuring consumers can still shop Flying Machine on its platforms. The brand will also be available to consumers on other digital channels and portals," she state1d.

Flipkart’s Exit Strategy

For Flipkart, the divestment aligns with its broader goal of capital efficiency. As the e-commerce giant prepares for a potential IPO, it has been pruning minority stakes in non-core businesses to focus resources on its primary marketplace and logistics infrastructure.

Key Financial Snapshot: Arvind Youth Brands (AYBPL)