Bain to invest $60m in Indian apparel maker

The investment in Lilliput Kidswear will be the global private equity firm’s second transaction in India.

Bain Capital Partners is to invest about $60 million for a significant minority stake in Lilliput Kidswear, an Indian manufacturer and retailer of children’s wear, sister news site PEI Asia has learned.

Bain declined to comment.

The Delhi-based children’s clothing manufacturer and retailer currently operates more than 250 retail outlets in India and another 30 stores in 10 different countries. It supplies products to international brands like US’ Gap clothing company, Old Navy and France’s Carrefour.

The investment will be used to add stores and to extend its product range, Sanjeev Narula, co-founder and managing director of Lilliput, told India’s Economic Times.

This will be Bain’s second investment in India. Earlier this year, the firm invested INR5.8 billion (€87 million; $125 million) in Himadri Chemicals & Industries, a Kolkata-based chemical products manufacturer focused on coal tar and its derivatives.

Bain Capital hired private equity and investment banking veteran Amit Chandra to found its Mumbai office in early 2008, its first in India. Chandra currently leads a team of eight investment professionals.

Everstone Capital, an India-focused alternative investment manager, is an existing investor in Lilliput. It is unclear if Everstone is diluting its stake through Bain’s investment in the company.

Everstone was unavailable for comment at press time.