Flipkart may buy 8-10% stake in Kishore Biyani's Future Lifestyle Fashions: report

In a bid to step up its game in the omni-channel space, e-commerce giant Flipkart has begun discussions with Kishore Biyani to pick up an 8-10 per cent stake in Future Lifestyle Fashions Ltd (FLF), the Economic Times reported. Listed on stock exchanges, Future Lifestyle Fashions Limited or FLF is the fashion arm of Kishore Biyani-led Future Group.

Top management from both sides met last week in Mumbai to discuss the matter. Followup meetings are due post Diwali, the report said.

Last month, US-based Amazon invested Rs 179.25 crore to buy 5 per cent stake in Shoppers Stop. Shoppers Stop will list its entire portfolio of over 500 brands on the Amazon marketplace in an exclusive arrangement. The partnership is likely to help Shoppers Stop tap into buyers from smaller cities and towns.

Future Lifestyle Fashions Limited owns and markets over two dozen fashion brands through exclusive brand outlets, department stores and multi brand outlets, as well as company operated chains such as Central, Brand Factory and Planet Sports.

It collectively operates around 400 stores spread over 5 million square feet of retail space.

Future Lifestyle Fashions Limited owns and markets 41 domestic and foreign brands in the country including Lee Cooper, Scullers, Indigo Nation, John Miller and Jealous 21.

While all these brands are sold through the Group's retail chains, they are also distributed through independent distribution channels, exclusive brand outlets and other modern retail chains.

Flipkart-owned fashion portal Myntra, which acquired Jabong last year, is the likely vehicle for the partnership, the report said.

Earlier this month Future Group entered into an agreement to buy loss-making premium retail chain HyperCity Retail. On completion of the transaction, Hypercity will become a wholly-owned subsidiary of Future Retail.

The K Raheja Corp groups flagship Shoppers Stop, which is a leading premium retail chain, owns 51 per cent stake in Hypercity which runs 19 big-box premium retail stores in upscale areas in Mumbai, Bengaluru and Hyderabad.