Navis exits India's Classic Stripes through promoter buyback
Navis Capital Partners has exited its controlling stake in India's Classic Stripes in a buyback led by the family of founder Kishore Musale, with the backing of KKR. The deal is said to be worth INR3.6 billion ($54 million).
Navis bought a 51% stake in Classic Stripes, which makes automotive graphics for the retail after-market and for corporate fleets, for $100 million in 2011. The company is part of the Astarc Group, also founded by Musale, which has interests in the infrastructure, dairy, agriculture and retail sectors, along with automotive.
KKR backed a similar deal last year in the healthcare sector, supporting the Shah family's buyback of Warburg Pincus' 27% stake in laboratory testing chain Metropolis. The value of that deal was not disclosed; Metropolis' managing director told Indian media that Warburg Pincus would earn "handsome returns" on the sale.
Navis has shown reduced interest in India in recent years. Unlike its sixth Asia fund, from which the Classic Stripes investment was made, the GP's seventh fund - closed last January at $1.5 billion - does not include an India remit. AVCJ Research's most recent recorded deal for Navis in India is the sale of restaurant chain Nirula's Corner House in 2012 to hotel and real estate group A2Z Excursions.
The relationship between Navis and Classic Stripes has been rocky. In 2014 Musale stepped down as managing director, citing excessive interference and mismanagement by Navis in a letter to the board of directors. At the time Indian media also reported declining orders from key clients due to a loss of confidence in the company following departure of key employees.
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