L Capital Asia, a private equity firm backed by $29 billion global luxury conglomerate LVMH group, has made its first India deal by picking up 25.5 per cent stake in Sanjay Kapoor-promoted Genesis Luxury Fashion Pvt Ltd. Although the deal size has not been disclosed, the investment in Genesis Luxury will be done in two tranches, according to a statement. L Capital also plans to form more joint ventures with Genesis for new businesses.
Genesis Luxury Fashion was set up as a subsidiary of Genesis Colors Pvt Ltd in 2008 for marketing and distribution of global luxury brands across categories like apparel and accessories. Genesis Luxury sells several brands such as fashionable bags and accessories from Tumi, British label Paul Smith, Italian handcrafted luxury from Canali, handcrafted leather bags & accessories by Bottega Veneta, and Jimmy Choo.
Its parent company Genesis Colors owns luxury fashion labels like Satya Paul and Bwitch!. The company raised Rs 80 crore in private equity funding from Henderson Equity Partners in 2009 while its other backers include Sequoia Capital India, Mayfield Fund and Silicon Valley Bank.
L Capital Asia has launched a $640 million fund earlier this year, targeting the fast-growing economies of China, South Asia and India. The firm has already invested in five companies in South-East Asia and China. L Capital Asia also roped in Sanjay Gujral, an executive director in Everstone Capital’s PE team, as its India managing director.
L Capital Asia will invest in consumer brands, lifestyle concepts, lifestyle food & beverage, beauty & wellness, boutique hospitality, media & entertainment and private education. L Capital also has funds sponsored by LVMH in markets like the USA and Europe, where it has invested in companies like Pepe Jeans and Princess Yachts.
“We are very pleased to announce our first investment in India. The management of Genesis Luxury Fashion has shown tremendous growth over the past few years and established successful partnerships with global luxury brands. We are now extremely well-positioned to capture the growth of fashion that India is going to see. We hope to expand our portfolio of investments very rapidly here,” said Ravi Thakran, managing partner of L Capital Asia.
“Apart from the capital infusion into our business, we will gain immensely from L Capital’s vast global network and knowledge of the luxury and premium brands business. With the fund’s strong focus on consumer brands, lifestyle concepts, beauty and wellness, this association will be a catalyst for our plans to foray into the premium and fast-fashion brands business,” said Sanjay Kapoor, managing director of Genesis Luxury.