L Catterton obtains 10% stake in Future Lifestyle Fashions

25 May '18

3 min read

Courtesy: L Catterton Asia

L Catterton Asia, the Asian unit of the global consumer-focused private equity firm, has announced a significant investment in Future Lifestyle Fashions Limited (FLFL), India's largest integrated branded fashion company. The firm will acquire an approximately 10 per cent stake in FLFL through a mix of preferential allotment and secondary purchase of shares.

L Catterton Asia's significant investment in FLFL will enable FLFL's retail formats, Central and Brand Factory, and owned brands to leverage the global fashion and retail expertise of L Catterton to further strengthen and expand the business.

The transaction will enable FLFL along with L Catterton Asia, to continue enhancing shareholder value created in partnership with existing private equity investor Premji Invest, said the private equity firm in a press release.

Founded in 2012, FLFL owns and markets about 30 fashion brands through exclusive brand outlets, department stores and multi brand outlets, as well as company operated chains such as Central and Brand Factory. FLFL collectively operates more than 400 stores spread over 6 million square feet of retail space and is a unique player in the fashion industry due to its integrated ‘design to distribution’ model and presence across all key segments within the fashion industry.

With support from a large retail channel, FLFL also leverages its strong portfolio of owned brands that contribute to approximately 40 per cent of total sales, thereby creating a distinctive, integrated fashion play. Led by Lee Cooper, the top six ‘power brands' contribute approximately 60 per cent of FLFL's revenue from owned brands.

"Since founding FLFL in 2012, we have successfully created and grown leading Indian fashion brands and are excited to partner with L Catterton Asia to continue building on FLFL's unique vision. We are well positioned as the preferred fashion destination in India and with L Catterton's pedigree and fashion expertise, we will continue to be a trendsetter through our collective deep understanding of culture, style code, passion and aspirations of Indian consumers. This investment reinforces FLFL's position as India's leading lifestyle fashion company while opening up avenues of global collaboration for us,” said Kishore Biyani, founder and CEO of Future Group.

"We are excited about this new partnership with FLFL and believe it offers a unique combination of retail formats which cater to a large and fast growing aspirational consumer segment. We were attracted to FLFL due to its ability to create superior shopping experiences and a curated set of exceptional brands for the Indian consumer. We have jointly identified areas where we can bring our unparalleled fashion and brand experience to unlock value for all stakeholders. The underpenetrated retail sector in India offers significant opportunity and we look forward to working alongside Biyani and the outstanding management team throughout this next phase of the company's growth,” said Ravi Thakran, chairman and managing partner of L Catterton Asia.

"Over the last four years, we have been privileged to work with Biyani and his management team in scaling up the business across all verticals and unlocking significant shareholder value. This has made FLFL into one of India's most admired and profitable fashion retailers with a growing bouquet of owned brands. We will continue to be closely involved in the company's next phase of value creation along with the L Catterton team,” said Rahul Garg, partner, Premji Invest.

Lazard India acted as the sole financial adviser to FLFL and its shareholders. (KD)

Fibre2Fashion News Desk – India

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