Advent International buys lingerie brand Enamor

Global private equity (PE) firm Advent International, has bought out women’s innerwear brand Enamor from Indian Alternatives, Faering Capital and its promoters for about INR 320 Crore.

           

Women’s lingerie in India is a high-growth market, with only a few strong brands in operation. As lingerie sales increase alongside disposable income, Enamor, one of the market’s leading players, is strongly positioned to benefit from these trends.

Started in collaboration with French lingerie brand Barbara in 2001, Enamor has grown to 20 exclusive brand outlets and over 4,500 points of sale across India, mainly in larger cities. The brand that makes lingerie, sportswear and athleisure wear, also sells its products online.

The deal marks Advent’s eighth investment in India and fourth in the consumer goods sector since 2015. In 2017, the firm acquired Dixcy Textiles Pvt. Ltd, which is an exclusive manufacturer and marketer of several leading men’s innerwear brands, including Dixcy Scott, Dixcy Scott UNO, Dixcy Josh and Dixcy & Slimz. Within the consumer goods space, the firm also agreed to acquire a majority stake in packaged snacks maker, DFM Foods Ltd., in September. In 2015, it invested in consumer electrical goods maker, Crompton Greaves Consumer Electricals.

Advent International acquires Dixcy Textiles

Advent International the leading US-based private equity investor, has acquired Dixcy Textiles Pvt. Ltd, the South Indian firm which sells leading innerwear brand Dixcy Scott.

The transaction is Advent’s fourth investment in India since 2015 following its purchase of equity stakes in Crompton Greaves Consumer Electricals, QuEST Global Services and ASK Group. Dixcy Scott, endorsed by Bollywood star Salman Khan, competes with Page Industries Ltd, the licensee for the Jockey brand in India; Rupa and Co. Ltd, the owner of MacroMan, Frontline and Euro brands; Lux Industries Ltd, the owner of the Lux Cozi brand; and Dollar Industries Ltd, which sells brands such as Bigboss and Club in India.

Founded in 1982, Tirupur-based Dixcy is the exclusive manufacturer and marketer of several leading innerwear brands, including Dixcy Scott, Dixcy Scott UNO, Dixcy Josh and Dixcy & Slimz. The company also sells a premium range of products including casual wear such as track pants, shorts and polo t-shirts. Additionally, Dixcy has begun to expand internationally by placing its products in stores across the Middle East and Singapore, stated the company release. The company employs over 3,500 people and generated sales of Rs780 crore ($120 million) in fiscal year 2017.

The Indian underwear market is currently estimated at Rs24,000 crore and the segment has grown at 15% over 2010-15, according to a 2016 report by Intimate Apparel Association of India and Wazir Advisors. The underwear market is estimated to continue at the same growth rate over the next five years and is expected to become a Rs47,000 crore market, which is nearly 8% of the total estimated apparel market, by 2020, said the report.