IL&FS invests $22.5m in Jyothy Fabricare

The investment comes one month after IL&FS set a $300 million target for its Tara India Fund IV, which focuses on growth capital investments primarily in the manufacturing, retail and logistics sectors. The fund's predecessor was the $225 million Tara India Fund III, raised in 2007.

JFS was sold by its promoter, Indian fast moving consumer goods major Jyothy Laboratories, whose products range from household insecticides to personal care. The company's client base includes Indian Railways, five‐star hotels and certain marquee corporates. In addition to its laundry outlets, JFS also operates a door‐to‐door service for retail customers.

JFS will use the capital to launch services in eight cities over the next two years through strategic acquisitions. It has already bought Diamond Fabcare in Delhi and Akash Cleaners in Mumbai, taking its total number of outlets past 100.

According to a statement on the transaction, India's market for outsourced laundry services is worth an estimated INR70 billion ($1.58 billion), and is slated to grow in parallel with rising household incomes.

The investment comes during an active period for IL&FS. Last month, it invested INR400 million ($8.9 million) in agri-warehousing firm JICS Logistic, its fourth investment in India's logistics and warehousing space in five years. That deal came two months after a private equity fund managed by IL&FS exited Continental Warehousing Corporation via a trade sale to Warburg Pincus for $100 million.

Meanwhile, it was reported last month that Apax Partners was closing in on a 26% stake in Jyothy Laboratories, JFS' parent. This would bring to an end a battle between several private equity firms over the $150 million deal. Jyothy was previously said to be in negotiations with Apax, Actis, Carlyle and TPG.

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• Topics
• South Asia
• Consumer
• IL&FS Investment Managers