Everstone Capital, an Indian investment firm, has begun early-stage discussions for acquiring 25-30% stake in designer Ritu Kumar's business, according to sources. Although Kumar did not respond to the company's inquiries, her promoters are looking for a vaulation of Rs 300 crore for the company.
Having been awarded the pretigious Padma Shri in 2013, Ritu Kumar sells designer Indian fashion under her brand name RITU KUMAR across India and internationally. It seems that, particularly in recent months, her appeal cannot stop growing.
Explaining Everstone's investment choice, Saloni Nangia, president at retail consultancy Technopak, said, 'for designer wear, the opportunity is still niche, but growing. The biggest focus for designer clothing is weddings which are largely traditional-wear focused. Some of the designers are present through their ethnic prêt lines, which is an attractive business opportunity. They need to ensure that they are fashion forward and differentiated. While the market is still small, the opportunity is scalable and sustainable in the long term. Therefore, private equities are keenly interested.'