Fabindia plans to expand its operations both in the domestic and international markets. The question is whether the company is eyeing to expand only in the apparel sector or in the luxury market as well? The
ethnic and home furnishing firm has sold its seven per cent stake to Wipro founder Azim Premji's Premji Invest for approximately Rs 125 crore.
Besides, L Capital-the private equity arm of the world's largest luxury conglomerate LVMH-bought
eight per cent stake in the company from Wolfensohn Capital Partners around a month ago.
Asked if Fabindia will add "luxury" to its commercialcum-social entity, L Capital Asia managing partner Ravi Thakran said, "We have no need or desire to make Fabindia into a luxury brand. The brand, as it stands now, is noted for its high quality and great value for money and we want to keep it that way. Our endeavour will be to help in its expansion, improve things such as store design, better merchandising, enhanced visualisation, better infrastructure, and catapult it as a global leader."
Thakran further said that the association of Premji Invest with the firm is a welcome one. "We have done in collaboration with Premji Invest and we welcome them as our partners. The company has high morals and ethics and that are valuable. As far as Fabindia is concerned, its story is amazing. Very rarely does one come across a company that successfully marries both social and commercial objectives the way they have succeeded in doing so."
When contacted, neither Fabindia nor Premji Invest spokespersons commented. According to people close to the development, the funds raised by the company will be used for domestic and international expansion.
Courtesy: Mail Today 
Special 
