An acquisition in Indian ethnic wear segment may take place soon as Manyavar owner Vedant Fashions has reportedly initiated talks for acquisition of ethnic womenswear brand Soch. If reports are to be believed then deal may be sealed at slightly over Rs. 1,000 crore.
One of the most profitable Indian fashion companies, Vedant has around Rs. 550 crore in top line revenue, while Soch reportedly closed last fiscal with about Rs. 350 crore. If the reported deal becomes a reality, the Kolkata-based men’s ethnic wear brand would be able to expand its presence in the womenswear market, where it has been trying to build a brand called Mohey. Womenswear accounts for 85 per cent of the heavily fragmented Rs. 80,000-crore ethnic fashion market, and is buoyed by the rising disposable incomes among women.
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Manyavar currently operates 400-plus stores across 170 locations and could be valued at over Rs. 2,500 crore, while Soch has a store footprint across 80 locations, mostly in southern and western states. Manyavar embarks on an expansion drive, which is projected to touch 700 stores and over a million sq. ft. of retail space by the end of this decade.
