Arvind Fashions Limited will acquire Flipkart Group’s 31.25% stake in Arvind Youth Brands Pvt Ltd for ₹135 crore, gaining full control of Flying Machine. The brand, which posted ₹432 crore turnover in FY25, will continue to be sold on Flipkart and other digital platforms.
Arvind Fashions Limited’s decision to acquire Flipkart Group’s 31.25 per cent stake in Arvind Youth Brands Pvt Ltd for ₹135 crore marks a decisive moment in the evolution of one of India’s most recognisable youthwear labels, Flying Machine, and signals a renewed push by the apparel major to consolidate control over its core brands amid a rapidly shifting fashion retail landscape.
The transaction, disclosed in a regulatory filing on Monday, will see Arvind Fashions acquire the minority stake held by the Flipkart Group in Arvind Youth Brands Pvt Ltd (AYBPL), the entity that owns and operates Flying Machine. Once completed, Arvind Fashions will have full ownership of the youth-focused brand, strengthening its strategic flexibility at a time when digital channels, omnichannel retail and brand-led storytelling are becoming central to growth in the fashion and lifestyle segment.
Arvind Youth Brands Pvt Ltd is engaged in the wholesale and retail of apparel and accessories under the Flying Machine brand, which has a long legacy in India’s denim and casualwear market. According to the filing, AYBPL reported a turnover of ₹432.16 crore in the financial year ended March 31, 2025, underlining the scale the brand has achieved even as competition in the casualwear and youth fashion space has intensified.
Flying Machine’s journey over the past decade has mirrored the broader transformation of India’s apparel market. Once best known as a brick-and-mortar denim label with a strong presence in physical stores, the brand has undergone a significant repositioning to stay relevant with younger consumers who increasingly discover, evaluate and purchase fashion online. Over the last five years in particular, Flying Machine has re-established itself as a well-accepted brand on digital channels, leveraging data-driven merchandising, influencer-led marketing and sharper trend responsiveness.
A key driver of this digital resurgence has been the partnership with the Flipkart Group. The collaboration helped Flying Machine become one of the top casualwear brands on major e-commerce platforms, catering to India’s fashion-conscious youth who value both affordability and style. The association gave the brand access to Flipkart’s vast customer base, deep insights into online shopping behaviour, and the operational muscle required to scale quickly across categories and geographies.
While Arvind Fashions is now buying out Flipkart’s equity stake, the companies are keen to underline that the commercial relationship remains intact. “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,” said Amisha Jain, Managing Director and CEO of Arvind Fashions Limited. The statement suggests that the exit of Flipkart as a shareholder does not signal a retreat from the digital-first strategy that has been instrumental to Flying Machine’s recent success.
Structurally, the transaction involves Arvind Fashions acquiring 31.25 per cent of the total shareholding of AYBPL on a fully diluted basis. This comprises one equity share of ₹10 each and 58,95,852 compulsory convertible preference shares of ₹100 each. The deal is expected to be completed by December 29, 2025, subject to customary closing conditions. The use of CCPS reflects the financial structuring that has supported the joint venture so far, and their conversion will simplify the capital structure once Arvind Fashions assumes full control.
For Arvind Fashions, the acquisition aligns with a broader strategy of sharpening focus on owned brands while ensuring they are built for scale across channels. The company’s portfolio includes several well-known international and homegrown labels, and Flying Machine occupies a distinct position as a youth-centric, mass-premium brand with strong recall in denim and casualwear. Full ownership allows Arvind Fashions to make faster decisions on product innovation, marketing investments, store expansion and digital partnerships without the need to align with a minority shareholder on strategic priorities.
The timing of the move is also significant. India’s apparel market is witnessing a rebound in discretionary spending, particularly among younger consumers, even as value-consciousness remains high. Casualwear continues to outperform more formal categories, driven by hybrid work cultures, campus fashion trends and a growing emphasis on comfort-led styling. At the same time, the market is crowded with domestic brands, international fast-fashion players and digital-native labels, all competing for attention on the same e-commerce platforms and social media feeds.
In this environment, brand clarity and execution speed are critical. By consolidating its stake in AYBPL, Arvind Fashions is positioning Flying Machine to respond more nimbly to trend cycles and consumer preferences. The brand’s recent performance on digital channels demonstrates that legacy labels can successfully reinvent themselves when backed by the right mix of design capability, supply chain agility and platform partnerships.
From Flipkart’s perspective, the divestment appears to be a natural progression after having played a catalytic role in Flying Machine’s digital transformation. Strategic investments by e-commerce platforms in consumer brands have often focused on accelerating growth, professionalising operations and strengthening online presence, rather than long-term ownership. With Flying Machine now firmly established as a top casualwear brand online, Flipkart’s exit allows it to redeploy capital while continuing to benefit from the brand’s presence on its marketplaces.
The deal also reflects a maturing of relationships between traditional brand owners and digital platforms in India. Early collaborations often involved equity participation as a way to align incentives and share risk. As brands build their own digital capabilities and omnichannel strategies, these partnerships are evolving into more arms-length, commercially driven arrangements focused on reach, logistics and data rather than ownership.
For consumers, the immediate impact is likely to be minimal. Flying Machine will continue to be available on Flipkart and other digital portals, alongside its physical stores and brand-owned channels. Over time, however, full ownership could translate into a more cohesive brand narrative, tighter integration between online and offline experiences, and potentially faster rollout of new categories or collaborations aimed at Gen Z and millennial shoppers.
The ₹135 crore price tag for the 31.25 per cent stake offers a glimpse into the valuation of a scaled, youth-focused apparel brand in today’s market. With a turnover of over ₹430 crore in FY25, AYBPL represents a significant revenue contributor within Arvind Fashions’ portfolio. The acquisition underscores the company’s confidence in Flying Machine’s growth trajectory and its belief that the brand’s best years may still lie ahead, particularly as digital penetration deepens beyond metro cities.
As the transaction moves towards its expected closing in late December 2025, industry watchers will be keen to see how Arvind Fashions leverages full control to further sharpen Flying Machine’s positioning. Whether through deeper digital engagement, expansion into new sub-categories, or more aggressive omnichannel plays, the buyout signals that the company is doubling down on a brand that has successfully bridged its heritage with the demands of a new generation of Indian consumers.
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