Private Equity News & Analysis

Henderson backs Indian fashion retailer with $17m

With its acquisition of a 13 percent stake in Genesis Colours, the private equity arm of London-based Henderson Global Investors joins other private equity firms, which have invested in the company.

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Henderson Equity Partners has invested $17 million for a stake of between 12 percent and 13 percent in Indian fashion retailer Genesis Colors.

Set up in 2001, Genesis Colors retails 6 brands across India: Satya Paul, Shobhaa Dé, Deepika Gehahi, Samsaara, Bwitch and Tie Rack. The company also owns the distribution rights in India to luxury labels including Canali, Kenzo, Bottega Veneta, Just Cavalli, Aigner, Paul Smith and Jimmy Choo.

The capital will be used to open new stores and grow Genesis Colors’ portfolio of brands, Vishal Marwaha, a partner at Henderson Equity Partners, said in an interview.

It also pushes the company’s initial public offering plans forward to the next two to three years, Sanjay Kapoor, a Genesis Colors’ managing director, told The Economic Times. Last year, Sequoia Capital India, Mayfield Fund and Silicon Valley Bank invested a combined INR1.1 billion ($24 million; €16 million) in the company, according to the Indian daily. Indian banking and financial services firm JM Financial has also invested in the company through its $225 million India Fund.

The investment was made out of Henderson Asia Pacific Equity Partners II, the firm’s second Asia-focussed fund. Rahul Bhargava, a Henderson Equity Partners’ principal confirmed the fund had closed but declined to disclose its size and time of closing, citing confidentiality issues. However, in March this year Marwaha told PEI Asia the fund was targetting a $300 million final close by June.

Fund II makes growth investments of between $15 million and $25 million primarily in India and China. It is interested in the media, education and retail sectors and its previous investments include Indian agrochemical company Sharda Worldwide Exports and Shenyang Hongyao Pharmaceutical, a traditional Chinese medicine manufacturer and retailer in China. 

The fund’s $210 million predecessor is fully invested. Fund I made nine investments, of which four were in India. The firm’s previous investments in the country include; private telecommunication services provider Bharti TeleVentures; HT Media, a publisher of newspapers including the Hindustan Times daily; Jubilant Organosys, a company engaged in providing products and services to the life science industry; and Hindustan Sanitaryware & Industries, a manufacturer and distributor of ceramic bathroom products.