Everstone, a leading India and South East Asia private equity investor, will invest Rs 100 crore in one of India's leading fashion houses, Ritu Kumar for buying an undisclosed minority stake.
Established in 1969, Ritu Kumar is one of India's leading fashion house catering to a range of women's clothing including bridal, formal and western wear. Ritu Kumar has three brand offerings include - Ri, a premium bridal and formal wear line, Ritu Kumar, a traditional pret brand offering ethnic every day and semiformal wear, and Label, a fashion pret line.
In September 2013, Business Standard had reported about the possible deal between Everstone and Ritu Kumar.
Sameer Sain, Co-founder and Managing Partner of the Everstone Group, said, "We are delighted to partner with the iconic Ritu Kumar, whose brand has put India's rich craftsmanship and heritage on the global map. Combining Ritu Kumar's great brand heritage, its strong management team and Everstone deep understanding and expertise within this space, Ritu Kumar will be poised for continued success and growth."
Some of Everstone's recent investments include F&B Asia (Burger King India), IndoStar Capital, S Chand and Hinduja Leyland Finance.
Amrish Kumar, Director and CEO, Ritu Kumar, said, "In the last seven years we have been developing structures within the company including sub-brands and product lines to create scale in the premium and luxury segments. We believe that the time is right both internally and in the macro environment for the infusion of growth capital."
Langham Capital was the financial advisor to the transaction.
According to a recent report by Assocham, the designer wear industry in India is likely to reach Rs 11,000 crore by 2020 from the size of Rs 720 crore, growing at a compounded annual growth rate of 40%.
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