Fabindia acquires 25% in UK ethnic retail chain

Thu Jan 8, 2009 10:11am IST

Related Topics

The valuations may be on the lower side as the sales in UK are falling.

Fabindia, the authentic Indian clothes and accessories retail chain store, has acquired a 25% stake in UK's bohemian womenswear retailer EAST. Fabindia's finance director Sunil Chainani will join the EAST board, reports Economic Times.

The valuations may be on the lower side as the sales in UK are falling. The investors in EAST include Luke Johnson, the Channel 4 chairman and John Singh of Jaipur.

While EAST has annual revenues of £30 million, Fabindia has revenues of about Rs 300 crore. EAST was formed in 1994 and started with mainly clothes and designs based on designs from Jaipur.

EAST has 77 outlets, which includes selling through 18 John Lewis stores. This network will Fabindia sell its garments in UK. Fabindia already has a presence in Gulf with stores in Dubai, Bahrain and Qatar. The investors in EAST include Luke Johnson, the Channel 4 chairman and John Singh of Jaipur.

Fabindia got a valuation of $184 million in 2007 when WCP Mauritius Holdings, run by former World Bank president James Wolfensohn, paid $11 million for a 6% stake in the company.

Formed in 1960 by John Bissell, a former buyer for Macy's in New York, to supply ethnic Indian clothes to the western world, Fabindia has come a long way.

The retail chain is in a rapid expansion drive and plans to expand the number of stores to 250 by 2010 from the present 80-85 stores. It has also recently introduced a line of craft-based jewellery to expand its customer base.

-- Copyright 2008 VCCircle.com. All rights reserved.

This content/article is provided by Mosaic Media Ventures Private Limited and not by Reuters. All rights, including copyright, in this content/article provided by VCCircle.com are owned or controlled by Mosaic Media Ventures Private Limited. The content may not be copied, broadcast, downloaded and stored (in any medium), transmitted, adapted or changed in any way whatsoever without the prior written permission of Mosaic Media Ventures Private Limited.

FILED UNDER:

Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage