Hidesign eyes raising Rs 100 cr through PE funding

In its second bid to raise capital from an outside investor, leather goods maker Hidesign is looking to attract private equity funding worth around Rs 100 crores. Currently Hidesign’s products basket include handbags, clutches and briefcases to jackets and leather garments. The company plans to launch a limited range of footwear this year.

Hidesign has seen its revenues grow from Rs 11.3 crores in financial year 2010 to Rs 97.72 crores in financial year 2014. Nnet profits rose from Rs 2.7 crores to Rs 4.7 crores over the same period. The biggest revenue earner for the firm is its range of bags, which as a category earned Rs 68.1 crores in fiscal year 2014. The company currently operates 60 exclusive stores and has a distribution network across more than 20 countries.

The fashion and accessories market, especially the mid-market and luxury segment, is expected to witness an annual growth of 20 to 25 per cent over the next five years. Regulatory environment is also helping push growth of the industry. FDI in single brand retail has given a boost. The rise in purchasing power of upper class in Tier II, III cities is expected to push Indian consumer spending.