The House of Anita Dongre (HOADPL) is repurchasing a nearly 40 per cent stake held by US private equity firm General Atlantic (GA), marking the end of their nine-year partnership. GA initially acquired a 23 per cent stake from Future Lifestyle Fashions in 2015 for approximately US $ 17.76 million, later increasing its holding to nearly 38 per cent.
The buyback follows a period of declining revenues and operational restructuring at HOADPL, including store closures and brand discontinuations. A January report by ICRA highlighted weak demand growth and reduced scale of operations, forecasting the company’s revenue to decline to U S$ 59.22 million-US $ 65.14 million in FY ’24 and FY ’25 from US $ 71.77 million in FY ’23. Profit margins, however, are expected to remain steady at 19-20 per cent.
Founded in 1995, HOADPL owns brands like AND, Global Desi, and luxury label Anita Dongre. Recent challenges include repositioning flagship brands AND and Global Desi, which shifted from premium to mass-market appeal, impacting their brand perception and profitability. To mitigate losses, the company closed underperforming stores and discontinued three sub-brands: AND Girl, Global Desi Girl, and ITSE.
HOADPL’s leadership is now focusing on streamlining operations to strengthen its market position amid a highly competitive fashion landscape.
