Fabindia obtains 40 percent stake in Organic India

Fabindia, the ethnic clothing and handicrafts retailer,

is said to have acquired 40 percent stake in Organic India, a North Indian organic food & supplement firm. As per media reports, through this deal, Fabindia’s organic division would merge with Organic India with an investment of Rs 15 crores pumped into it.

The Organic India story has an interesting twist to it. Yoav Lev from Israel, a former Osho disciple now known as Bharat Mitra, and his wife Holly Bronfman, daughter of former Seagram Chairman Edgar Bronfman, now known in India as Bhavani started the venture in 1997 in Lucknow, with encouragement by Lev’s guru Sri Poonja. The company now works with a few thousand marginal farmers covering around 2.4 million hectares in Uttar Pradesh, Andhra Pradesh and Rajasthan. They grow tulsi, fruits and veggies, spices, herbs and other allied products that go into making herbal supplements, medicines, spices and oils and other food products. Interestingly, 60 percent of its yearly revenue comes from exports to 35 countries that include the US, Australia, Israel, UK, Germany and other European countries.

Fabindia too had a similar beginning. It was founded in 1960 by an American, John Bissell to market India’s vast and vibrant crafts and fabrics. When William Bissell took over the company from his father John Bissell in the 90’s, he transformed it from an export house into a national level retail brand. The Bissell family still owns 50 percent stake in Fabindia, while Wolfensohn held 8 percent now acquired by L Capital. The company’s employees own the balance 42 percent. After the L Capital deal last year, Azim Premji invested Rs 100-125 crores and has a 7 percent stake.