India biggest denim producer, Arvind Ltd has sold its stake in the joint venture it started with US-based VF Corporation making an enormous profits against its investment made five years ago.

Arvind made 47 times the investment it made in a joint venture. Sanjay Lalbhai-promoted company made Rs257 crore from a Rs5.47 crore investment it made five years back in the joint venture that looks to market products under the Lee and Wrangler brand.

The Ahmedabad-based company sold its 40 per cent stake the owner of brands. Arvind CFO Jayesh Shah said, "We sold the shares in VF-Arvind at a valuation which is more than two times sales or 17 times EBIDTA multiple."

Arvind will use the funds to reduce its dept limit, which has built up to around Rs 2,500 crore. Arvind had been the India licensee for VF's brands Lee and Wrangler since 2001. VF Corp had acquired 60% stake in the business for close to Rs 160 crore in 2006 and had an option to buy it fully in the next five years.

Arvind earned Rs 120 crore as share from the venture, accounting for almost 3% of its consolidated revenue, according to a statement from the company. VF Corporation is yet to announce the name of its Indian businesses.