Indian apparel maker, Bombay Rayon Fashions (BRFL) has entered into terms of understanding for taking over brand 'Guru' and other related retail business on going concern basis, with Italian company Jam Session Holdings Srl for a total consideration of about Rs. 208 Cr (33 mn euros).

The acquisition is by exercising the call/put option within 42 months and till then operate the brand and business on a lease basis.

The company has also approved the scheme of amalgamation of its wholly owned subsidiary Leela Scottish Lace into the company subject to the necessary approvals.

Last year, BRFL had acquired controlling stake in Leela for Rs 155 crore.

Bombay Rayon Fashion Limited reported a 151% increase in net profit at Rs. 345.7 million for the quarter to December 2007. Its sales increased by 81% to Rs. 2,387.5 million.