TPG completes exit from India's Campus Activewear
TPG Capital – acting through its growth equity strategy – has completed its exit from Campus Activewear, an Indian athleisure footwear brand it took public last April.
The private equity firm sold approximately 23.2m shares, or a 7.6% stake, for INR 347.24 apiece, according to exchange data. The proceeds of INR 8.06bn (USD 97.8m) come on top of an INR 8.5bn windfall from Campus Activewear’s IPO, which saw TPG reduce its holding from 17.19% to 7.6%.
Campus Activewear’s closed down 8.22% at INR 338.75 on March 24, giving the company a market capitalisation of approximately INR 103.2bn. It peaked at INR 640 in October 2022.
TPG jointly invested in Campus Activewear with QRG Enterprises, the family office of Havells Group, in 2017. They took a combined 20% stake at a reported valuation of INR 15bn. QRG offloaded just over half its stake in the IPO, falling from 3.86% to 1.99%.
Founded in 2006, Campus Activewear claims to be India’s largest sports and athleisure footwear brand by sales value and volume. TPG and QRG’s investment coincided with annual revenue crossing the INR 5bn threshold, the opening of 16 retail outlets, a push onto major e-commerce marketplaces, and the incubation of direct-to-consumer (D2C) distribution channels.
Campus Activewear is one of the few established Indian brands in the country's sports and athleisure footwear. Most of its sales are in the sub-INR 1,001 category, where it competes with the likes of Relaxo, Bata, and Liberty. This category accounted for 48% of industry-wide sales of INR 90bn in the 2021 financial year. Nike and Adidas target the INR 1,501-and-above category, which generated 37% of sales.
Campus Activewear has a team of 48 designers, and it releases new products within 180 days of conceptualisation. As of March 2021, there were 1,433 product lines for men, 241 for women, and 485 for children. A total of 583 new designs were introduced during that 12-month period.
It works with 425 distributors that serve 19,200 retailers. An internal salesforce of 152 is responsible for direct field coverage of 11,300 retail outlets. D2C channels account for about one-quarter of overall sales, although it is more than 80% in South India where the brick-and-mortar retail network is not as expansive.
Revenue reached INR 7.11bn for the 12 months ended March 2021, down from INR 7.32bn the previous year. Over the same period, net profit fell from INR 623.7m to INR 268.5m. For the nine months ended December 2022, Campus Activewear’s revenue was INR 11.4bn, up from INR 8.4bn a year earlier, while net profit rose from INR 855.8m to INR 941.7m.
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