Sahara to pick up majority stake in Genesis Luxury

Subrata Roy-led Sahara Group may pick up majority

stake in Genesis Luxury, a retailer of high-street fashion brands like Armani, Burberry, Canali, Paul Smith and Jimmy Choo. The company is said to be in talks with Genesis in a bid to develop a portfolio of lifestyle businesses and the transaction is valued at around Rs 400 crores.

Though Genesis has refused media reports of its relationship with LVMH-arm L Capital Asia going kaput, according to the industry sources, a beauty products retailer - Sephora, owned by LVMH is on the lookout for a new franchise partner in India signalling at the relationship between the two going sour. The company is said to be exploring a deal with DLF Brands.

Genesis Luxury along with its parent company Genesis Colors that has been successfully retailing Satya Paul, Tie Rack and Bwitch, which are recording a growth rate of 35 percent annually despite the economic slump. The company had also announced plans to roll out an IPO in the next two to three years based on the requirement.

Genesis has seen its same-store sale rise 10-15 percent over the last fiscal. It is also in talks with some high-street casual wear brands, which may be introduced by them in the next year or two. Company launched two new brands in July this year - Michael Kors at DLF Emporio, New Delhi and Villeroy & Boch at the Palladium, Mumbai.

While L Capital is an investor in Genesis Luxury, three other private equity funds— Sequoia Capital, Henderson and Mayfield are investors in Genesis Colors, the parent company which owns 60 percent of Genesis Luxury.