Rupa & Co to Merge Subsidiary Oban Fashions with Itself
One of the largest knitwear brands in India, Rupa & Co Ltd will merge its wholly-owned premium brand subsidiary Oban Fashions with itself, the company said in a statement.
Launched in 2018, Oban Fashions has international brands FCUK and Fruit of the Loom under its fold and expects the revenue to reach Rs 40 crore in the current fiscal.
"The merger will take place in the third quarter of 2021-22, thereby giving it a distinct advantage in the Indian market. With this development, Oban Fashions anticipates increased market share, reduction in the cost of operations, a wider range of products, and expansion to new markets with greater potential to sell international brands," Dinesh Lodha, CEO, Rupa said.
The synergy in business objectives between the two companies will be enormous since Rupa eyes exponential growth in e-commerce as well as exports to new markets, the company said.
The company also has aggressive plans to grow the domestic business in India, especially in southern and eastern parts of the country, Lodha said.
"The Oban brands expect 25-30 percent growth, while Rupa as a company is targeting 15-17 percent revenue growth at over Rs 1,330 crore in 2020-21," he said.