L Capital to invest $150m in Raymond Apparel - report
L Capital Asia, the private equity arm of LVMH, the world's largest luxury goods group, is said to be in talks to invest INR7.5 billion ($150 million) in Indian clothes company Raymond Apparel.
Two sources told the Economic Times that the deal would be for a minority stake of 10-20% in what would represent India's biggest private equity investment in an apparel business.
Raymond Apparel owns brands including Park Avenue, Parx and Notting Hill, which it sells at The Raymond Shop and multi-brand stores across India and West Asia. It is wholly owned by listed holding company Raymond, which is managed by chairman and managing director Gautam Hari Singhania.
The impetus for raising funds is said to be Raymond's desire to make a bolt-on acquisition of a local competitor. It also plans to expand its brands overseas.
News of this potential deal comes just days after Premji Invest, the $1 billion private equity vehicle backed by Wipro Group chairman Azim Premji, invested INR1-1.25 billion for a 7% stake in another local fashion company, Fabindia. Prior to that, L Capital itself had bought an 8% stake in the ethnic-wear business.
Consultancy firm McKinsey estimates that India's apparel market will be worth $40 billion by 2015.
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