Future Lifestyle Fashions to sell 10 per cent stake to Catterton Asia

Media reports suggest, Future Lifestyle Fashions (FLF) is reportedly selling 10 per cent stake to L Catterton Asia through a mix of preferential allotment and secondary purchase of shares. Backed by global luxury conglomerate LVMH, L Catterton is the world’s biggest consumer-focused venture capital and private equity firm. The firm’s last investment in India’s fashion industry was Fabindia in 2012.

The Singapore-based wing of the international firm cited FLF’s vertically integrated business model that takes care of everything from design to distribution as the main reason behind their interest in the Indian retailer. While the investment firm stands to gain from the growing consumption in Asian market from the deal, it will also bring an international level of retail expertise to the FLF board. Of the 31 brands, six power brands including Lee Cooper, Jealous 21, Scullers, Indigo Nation, All, John Miller have been identified as key drivers of future growth.

FLF operates over 400 multi-brand stores. Its in-house brands contribute about 40 per cent revenue. In addition to this, the retailer also operates the country’s largest multi-brand discount outlet channel called Brand Factory that caters to value-seeking aspirational Indian customers and has no direct competition in the market.