Ethnic women’s wear labels attract PE funds

Women’s ethnic wear market in India is witnessing a steady

growth and unlike other apparel segment, private equity (PE) investors are showing keen interest in grabbing a stake in brands active in this space. Labels like W, BIBA and AND are already in final talks with investors to raise funds for expansion and growth.

As per retail consultancy firm Wazir Advisors, the ethnic wear market is expected to grow at 12 percent by 2018 to Rs 500,000 crores from the current market size of Rs 250,000 crores. The women's ethnic wear market is expected to expand by 14 percent to Rs 1.75 lakh crore in 2018.

After relisting his company, Kishore Biyani, who had invested in BIBA and Anita Dongre’s AND is now selling his stake in both these companies at three times the investment he made to streamline his businesses and reduce debt. Experts say, the BIBA deal is expected to fetch Rs 300-350 crores, while the AND deal may bring in fortune of around Rs 200 crores.

Other ethnic wear players such as TCNS Clothing Company, which manufactures and markets women’s wear under the 'W' brand had received first round of funding of Rs 60 crores from PE firm Matrix Partners in 2011. At present, W has over 125 stores across the country and it plans to open 50 more stores this year. Fab India too has attracted private equity funding.