Nandan Nilekani buys Fabindia stake

Infosys cofounder Nandan Nilekani has acquired a two percent stake in ethnic wear company Fabindia. At present, Fabindia has 229 stores in India and 10 abroad. The company also sells through a portal. Wipro head Azim Premji has a 25 percent stake in Fabindia.

Fabindia was founded in 1960 by John Bissell to market India’s traditional crafts. It started out as an exporter of home furnishing. The first retail store opened in 1975. In 2000, the company added a non textile range to its portfolio. It also sells organic foods and personal care products. Fabindia has now forayed into western wear under the brand Fabels. Fabindia posted a 20.4 percent rise in sales in the domestic market with profit before tax at Rs 72 crores during the year ended March 2016. The company has a significant presence outside India.

In 2011, Fabindia acquired a majority stake in the UK-based women’s wear retailer East, popular for its vibrant and bohemian creations. The ethnic wear segment, which is mostly fed by the unorganised market, is seeing aggressive expansion driven by newer players both online and in the brick-and-mortar space. The size of the ethnic wear market is pegged at Rs 90,000 crores and it is growing at 15 percent year-on-year.