TVS Cap to exit Landmark with over 50% returns

Chennai-based private equity firm TVS Capital Funds

is said to be making an exit from Landmark, owned by Tata Group Company, Trent. According to sources, TVS Capital is expected to sell its 24 per cent stake in Landmark to the Tata Group firm for about Rs 100 crores. TVS Capital had acquired the stake for about Rs 65 crores in 2009 and it is exiting with returns almost 1.5 times greater than the purchase deal.

Pitted against Shoppers Stop’s Crossword, TVS Capital’s acquisition of stake in Landmark in 2009 had valued the company at Rs 270 crores. Based on Landmark’s revenue of Rs 196 crores for 2008-09, the revenue multiple during the investment was 1.38. Landmark’s current revenue is about Rs 350 crores, and the company has chalked out a retail expansion strategy for the chain.

Acquired by Tata Group for about Rs 150 crores, Landmark was started in 1987 by Chennai-based entrepreneur Hemu Ramaiah. The chain now operates stores across multiple formats, including ‘big-box’ stores in metros, airport and hotels. When TVS Capital invested in the chain in 2009, it had 20 stores, nine more stores were added later and now the company has plans to invest about Rs 50 crores in next two years to launch more stores.