Advent buys stake in India's Dixcy Textiles
Advent International has invested an undisclosed amount in Indian innerwear maker Dixcy Textiles.
The size of Advent’s stake has not been revealed, but in a statement the firm said it would take a “significant ownership interest” in the company. Prem Prakash Sikka, Dixcy’s founder and managing director, will retain a stake in the company and continue to serve as chairman after the transaction.
Dixcy makes several leading Indian innerwear brands, including Dixcy Scott, Dixcy Josh and Dixcy & Slimz, along with a range of casual wear products such as track pants, shorts, and polo shirts. The company’s products are available in more than 120,000 retail outlets across India, and it also has recently started exporting to Singapore and the Middle East. Dixcy claims to have recorded sales of INR7.8 billion ($121 million) in the most recent financial year.
“The innerwear market in India is expected to grow at double-digit rates over the next five years, driven by increased per capita spending and consumer demand for higher quality products,” said Shweta Jalan, managing director and head of India for Advent. “We see significant opportunities to create value by investing in distribution, sales and product innovation, and improving procurement and production efficiency.”
Advent is investing from its eighth global fund, which closed last year at $13 billion. The vehicle pursues buyouts, recapitalizations and growth investments, primarily in Europe and North America with Asia and Latin America considered on a selective basis. Its core industries are business and financial services, healthcare, industrials, retail, and technology, media and telecom.
The GP’s first India investment from the new fund was for a minority stake in investment and wealth management business ASK Group. Advent reportedly paid around $120 million for its holding.
The private equity firm also tried to acquire a controlling stake in Crompton Greaves Consumer Electricals, the former consumer products unit of India's Crompton Greaves, along with Temasek Holdings. A tender offer ultimately failed, with Advent buying around 22,000 shares out of the 163 million desired and Temasek acquiring none.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.