Sikka will also continue to retain a stake in the company. Both entities have not disclosed the financial terms of the transactions.
Located in Tiruppur, India, Dixcy was founded in 1982 by Sikka with a vision of creating a strong brand that caters to all segments of the innerwear and hosiery market. The company is the exclusive manufacturer and marketer of several leading innerwear brands, including Dixcy Scott, Dixcy Scott Uno, Dixcy Josh and Dixcy & Slimz. The company also sells a premium range of products including casual wear such as track pants, shorts and polo t-shirts. Additionally, Dixcy has begun to expand internationally by placing its products in stores across the Middle East and Singapore.
Through its network of more than 1,000 distributors, Dixcy supplies products to over 120,000 retail outlets across the country. The company employs over 3,500 people and generated sales of INR 7.8 billion ($120 million) in fiscal 2017.
“We are excited to partner with Advent, a leading global investor with strong knowledge of the Indian market and significant experience in the retail and consumer sector,” said Sikka.
Raghul Sikka, director of Dixcy, added, “We look forward to working with Advent to further expand the business, following a twin-pronged strategy involving organic growth from the existing offerings and expanding internationally to newer geographies.”
“Dixcy is a well-positioned brand with a strong distribution network in an attractive industry,” said Shweta Jalan, managing director and head of India for Advent International. “The innerwear market in India is expected to grow at double-digit rates over the next five years, driven by increased per capita spending and consumer demand for higher quality products. We see significant opportunities to create value by investing in distribution, sales and product innovation, and improving procurement and production efficiency.”
Advent International has significant investment experience in the retail, consumer and leisure industry. Over the past 27 years, the firm has invested more than $9 billion in 71 companies in the sector worldwide.
Advent has been investing in India for 10 years and opened an office in Mumbai in 2009. The transaction is Advent’s fourth investment in India since 2015.
Avendus Capital is serving as the exclusive financial advisor and Khaitan & Co is serving as the legal advisor to Dixcy on the transaction. AZB & Partners is serving as the legal advisor to Advent International. (KD)
Fibre2Fashion News Desk – India
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