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Retail biggies opt for PE investments to seize market share

09
Apr '08

A massive world financial crisis have done little to impact the private equity (PE) companies and evidencing this fact are umpteen illustrations of giant retail enterprises who have dared to venture at a the most temperamental of the times.

Sequoia Capital is just one of the many firms planning to invest up to Rs120 crore in the explosive garment business of Nahar Retail.

More popularly with its brand name 'Cotton County', Nahar Retail endeavors to establish a lucrative brand image to have huge presence in the retail market. The company is already a proud owner of over 400 outlets in nearly 300 cities.

Presently, Cotton County around Rs100 crore in sales, and aims to become a Rs250-crore business by 2009.

In exclusive interview with Fibre2fashion, Mr Sachin Sahani, Vice President of Marketing, Nahar Retails, stated “Now private equity companies are looking at untapped potential of Indian organized retail business. In last 3 years it has shown a tremendous growth and this is just beginning.”

When asked about the future of Indian textile industry with regard to such massive investments, Mr Sachin asserted, “Textile Industry should come out of its commodity mindset. It should look forward for acquisition of branded companies or create brand of its own. Countries such as UK and USA are brand conscious inspite of sourcing them from Asian countries. Production alone, will not help, we will have to look forward for brands now.”

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