Franklin Templeton Private Equity Strategy will buy 20% stake in Mumbai-based Kimaya Fashions PvtLtd, for about Rs.60 crore, valuing the company at Rs.300 Cr.

Kimaya will issue fresh shares to Franklin Templeton and will use the funds to launch new brands, increase the line of existing brand and increase stores in India and overseas.

Transaction Reference: Economic Times

Pradeep Hirani and his wife Neha Hirani set up Kimaya in 2002. Kimaya caters to the super luxury consumer segment.

It sells designer wears of more than 100 designers including Rohit Bal, Manish Arora, Tarun Tahilani, Wendell Rodricks, JJ Valaya and Robert Cavilli and sells under 'Kimaya' brand through exclusive stores.

It currently operates 16 stores across India and one store in Dubai and plans to open additional 50 multi-brand retail stores in the country over the next three years. Some of these stores will come up in tier-I and tier-II cities such as Chandigarh, Ludhiana, Surat and Ahmedabad. Besides, it is also looking for opportunities in US and European markets.

The company is soon going to launch its private label Pret, which will be positioned as the premium apparel and accessory brand.

Paris-based PE Fund L Capital was also in the race to make an investment in Kimaya. L Capital is a PE fund sponsored by luxury products group LVMH Group and Groupe Arnault launched in 2001.

Franklin Templeton Asset Management (India) Private Limited's PE arm, Franklin Templeton Private Equity Strategy (FTPES), is managed by FT India and advised by Darby Asia Investors (India) Pvt Ltd.

FTPES closed in 2008 with a total capital commitment of Rs.630 Cr, invests in high growth, mid-sized unlisted companies in India - in areas such as infrastructure, manufacturing, and consumer goods, and in related sectors.

Earlier this month, FRPES along with Aureos South Asia Fund and ePlanet Capital, invested Rs.100 Cr for 60% stake in Newgen Imaging Systems Pvt Ltd, a Chennai-based e-publishing outsourcing firm. It also invested Rs.67.5 Cr in Kochi-based SFO Technologies Pvt Ltd (SFO). Its other investments include GKC Projects Limited, Career Point Infosystems, Electorsteel.

VC and PE funds have been backing fashion retail brands in the past few months. Sequoia Capital India invested $8 Mn in Fashionandyou.com,while Helion Venture Partners and Accel Partners made an investment of $2.8 Mn in Exclusively.in in 2010.

Previous Article

Cognizant Acquires CoreLogic India For $50 Mn

Next Article

PE Backed Augere To Sell 4G Spectrum, Quit India Operations