Kimaya: Hiranis to divest 20% stake

Friday, 10 December 2010

Pradeep Hirani set up Kimaya Studios, a Mumbai-based fashion house, with his wife Neha Hirani in 2002. Currently, they own 100 per cent equity in the company and are in preliminary talks with a host of private equity firms to divest around 20 per cent stake in the company for close to Rs 100 crores. The funds raised will be used to facilitate expansion plans and ramp up the number of stores in the country.

Kimaya Studios currently has 16 stores and plans to open at least 50 multi-brand retail stores in the country over the next three years. Some of these stores will come up in Tier-I, II cities such as Chandigarh, Ludhiana, Surat and Ahmedabad. The Mumbai-based fashion house is also looking to foray into the US and European markets after setting up a shop in Dubai. The company is soon going to launch its private label Pret, which will be positioned as a premium apparel and accessory brand. Currently, Kimaya caters to the super luxury consumer segment. The company claims to be clocking revenue growth of 30-40 per cent year-on-year.

As per industry estimates, the Indian apparel market is currently pegged at Rs 32,000 crores and growing at 15-20 per cent annually. PE investment in apparel retail seems to be on the rise in India. In April, TPG and Bain Capital picked 35 per cent in Lilliput Kids Wear from domestic investment firm Everstone for around Rs 385 crores. Other PE deals in fashion retail include Future Capital Holdings’ investment in Biba Apparels and Wolfensohn and Co’s infusion into FabIndia Overseas.