M&B footwear to dilute 1/4th stake

The company intends to invest around Rs 90 crore for setting up 250 stores across India by 2010.

The Economic Times
27 Jan, 2008, 0135 hrs IST,
Aman Dhall, TNN

NEW DELHI: M&B Footwear, a multi-branded retailing firm which owns the brand ‘ID’, is looking for a strategic partner. The company, according to co-promoter, Inder Dev S Musafir, is in talks with few private equity players, and will dilute around one-fourth of its stake in favour of the new partner.

The company is also planning to tap the capital market with an initial public offering (IPO) this year following the PE placement.

“The equity diluted will be a equal split between Bhai Ajinder Singh (the other promoter) and myself. We expect the deal to be finalised in another three-four months,” M&B Footwear co-promoter and director Mr Musafir told SundayET.

Mr Musafir added that the company will add accessories and apparels to its existing product line before the end of this year. “It is a natural brand extension for us. We will retail apparel and accessories including belts, caps, socks, and wallets,” he said.

The company intends to invest around Rs 90 crore for setting up 250 stores across India by 2010. Mr Musafir, in fact, doesn’t rule out taking inorganic route for the same. “That’s quite a possibility,” he said.
Further, to give a young & contemporary look to its brand, the company has re-worked its punchline. “Our new punchline is ‘Be The Cult’.

It aligns with our strategy to give a youthful image to the brand,” he explained. The company has earmarked the budget for brand promotion at Rs 20 crore in the coming year. Currently, M&B Footwear has licensing and distribution arrangements with seven footwear brands including Lee Cooper, Provogue, Rider (Brazil), and Geox (Italy).