PE investors show interest in India's apparel sector

India's apparel sector is attracting a lot of private equity (PE) investment of late.

The segment has seen numerous PE investors opting for mergers and acquisitions with well known Indian apparel companies.

For instance, Kishore Biyani’s Future Group divested its stake in brands like Biba, and And India getting returns almost 24-times its initial investment. Menswear label Mufti, on the other hand, is said to be in advanced talks to sell a 35 percent stake to PE giant Carlyle. Other examples include women's ethnic wear brands 'Jashn' and 'Bawree' have initiated talks with a host of private equity investors; ethnic-wear brand, Soch, is in the process of appointing an investment bank to scout for investors and women's formal-wear brand Chemistry has signed a term-sheet with a PE firm to raise Rs 40-50 crores.

Biyani's Future Ventures is also said to be eyeing stake in denim brand Spykar, other than Coupon and Giovani. However, industry experts feel that though investments would continue to trickle in, the apparel space is unlikely to see blockbuster deals until macro-economic conditions improve, and there is no ambiguity over FDI policy norms.