Indian textile group Arvind announced today (2 November) that it has divested its minority stake in VF Arvind Brands to VF Mauritius.

It sold the 40% stake in the company, which markets products under the Lee and Wrangler brands, for INR2.57bn.

The company was formed as a 60:40 joint venture between VF Mauritius and Arvind in 2006. Arvind invested some INR54.7m in capital into the company.

As part of the joint venture agreement, VF had the right to acquire Arvind's stake in the business after five years.

Commenting on the divestment director and CFO Jayesh Shah said: "We had a rewarding association with VF. In the last financial year our share of revenue from the joint venture was approximately INR1.2bn, which constituted slightly less than 3% of our consolidated revenue.

"Arvind plans to utilise cash flow received from the sale of the joint venture in reducing its debt."

Arvind posted a jump in second-quarter profit at the end of October, up 58% on the same period of the previous year.