We had reported earlier about L Capital, the private equity arm of LVMH and their plans for India. They have indentified India as a market with potential for luxury goods. Their studies and analysis of the market has shown them that lack of infrastructure comes in the way of realizing the full potential of the growing market. The $29 billion European luxury goods conglomerate has created a dedicated fund for Asia with a focus on China but is looking at India seriously.
Their first deal in India could be with fashion and lifestyle goods retailer Genesis Colors that has India distribution rights for luxury brands such as Just Cavalli, Canali, Kenzo, Paul Smith and Jimmy Choo. They are in advanced negotiations with the retailer to buy a stake. Reliable sources have confirmed the development. According to the same sources L Capital Asia is conducting due diligence on Genesis Lifestyle. The retail chain promoted by Sanjay Kapoor has about 125 outlets.
If market sources are to be believed the deal should be through in a month’s time. However Ravi Thakran, Managing Partner of L Capital Asia refused to confirm or deny the development. He simply said that his company is in negotiations with about 10-12 mid-scale Indian companies where it planned to pick up stakes between 10-49 %. The Genesis Colors deal if it comes through would be beneficial for both the parties as it would provide LVMH and its portfolio of brands a readymade distribution platform in India. The retailer would also gain immensely from the association with the conglomerate as it would get access to a whole range of top end brands and products.
