Manyavar\\\'s Vedant Fashion looks for dual acquisition to lead women\\\'s wear

After emerging as the market leader in the men’s branded ethnic wear category in the country, Vedant Fashion, the owner of the Manyavar brand, is eyeing to be the market leader in the ethnic women’s wear segment as well in the next 12 months.

Although the company has recently launched its homegrown brand for the women’s wear category – Mohey – it is eyeing acquisition of Soch and another brand, which will make it the undisputed market leader in the category.

“In the next 12 months, we will lead the branded ethnic women’s wear category as well and is on the lookout to acquire two brands," Ravi Modi, managing director of Vedant Fashions told Business Standard.

The entire ethnic wear market in the country is estimated at more than Rs 80,000 crore of which women’s wear comprises 85 per cent. This category has been growing at a nine per cent CAGR.

“The talks to acquire brands, including Soch, is under consideration as well as talks to rope in private equity investors,” he added.

Vedant Fashion will acquire the Soch brand from MD Retail at a valuation between Rs 1,000-1,200 crore and will need to either loop in investors in the company, which will mean a dilution of stakes or it will need to opt for financing a part of the acquisition via debts.

Asked if the company has narrowed down on the stake dilution to Kedaara Capital and L Catterton, which of late has been rumoured to show interest to pick up a 15 per cent stake which will pump in at least Rs 500 crore in the company, Modi said, “Until now, we don’t have any private equity investors but it is under consideration”.

While Manyavar is estimated to have registered a Rs 550 crore topline with the brand value estimated at around Rs 2,000 crore, Soch is estimated to have posted a Rs 350 crore topline with its brand being valued somewhat more than Rs 1,000 crore.

From a modest single store in Kolkata in 1999, Vedant Fashion increased its presence to cover 170 towns and cities with over 400 stores. MD Retail’s Soch which is primarily popular in the southern and western markets is present in over 80 locations.

Since the inception to target that branded ethnic wear segment, Modi has used the stylised ‘M’ alphabet for branding purposes.

Modi explains that for men, self-respect is the most valued quality while for women it is being beautiful and confident.

“Manyavar and Mohey are the ramifications of this very idea”, he said.

In case Manyavar acquires Soch at a value of more than Rs. 1,000 crore, it will be one of the highest acquisition cost in the apparel sector in recent times.