Fabindia eyes foray into luxury segment under Bandhej

After launching a western wear line Fabels and acquiring a majority (51 percent)

stake in Ahmedabad-based Bandhej in January this year, ethnic wear retailer Fabindia is eyeing a foray into the bridge to luxury segment. Fabindia would open exclusive concept stores offering handcrafted and curated women’s wear using the Bandhej platform, marking its entry into the bridge to luxury category. The price range of Bandhej products start from Rs 2, 500 and goes up to over Rs 40,000. Started in 1981 by the National Institute of Design alumni Archana Shah, Bandhej, already has 10 operational mono-brand stores.

With L Capital, the private equity arm of luxury goods maker LVMH Moët Hennessy Louis Vuitton, and PremjiInvest owning a stake in Fabindia, the company was able to report revenues of around Rs 1,000 crores in 2013-14. Famous for its hand-woven and hand-printed fabrics having traditional Indian prints and motifs, five-decade old Fabindia has now expanded to have 175 stores across 73 cities in India since its first store opened in Delhi in 1975.

Fabindia was founded in 1960 by an American called John Bissell to market vast and vibrant craft traditions of India. When William Bissell took over the company from his father John Bissell in the 90’s, he transformed the company from an export house into a national retail brand. William Bissell and family still own a 50 percent stake in Fabindia, while Wolfensohn held 8 percent now acquired by L Capital.