Garment makers attracting PE funding

Popular apparel brands such as women’s brand ‘W’,

Mineral Fashions and Chemistry are eyeing fresh round of funding from PE investors. While kids’ wear brand Gini & Jony is looking to raise second round of funding. Small and mid-sized apparel brands have been struggling to carry out their planned expansion and other plans due to lack of funding options. So many of them are now exploring fund opportunities from PE investors.

Many brands are failing to achieve the scale in their business due to slow economy, low consumer demand and expanding too fast and too quickly. Hence, many companies are looking for funds to manage and grow their business in the current scenario.

Mumbai-based Mineral Fashions, for instance has plans to open 50 more stores over the next 18 months, a huge jump from the current figure of five stores. At present, the brand’s products are sold through department stores such as Shoppers Stop, Central and Lifestyle in Mumbai. On the other hand, TCNS Clothing Company, which retails women’s ethnic wear brand ‘W’ 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 has plans to expand its store network by launching 50 new stores this year. It is looking at raising another round of funding.