Fabindia picks 25% stake in UK retailer EAST

Indiantelevision.com Team

(9 January 2009 9:30 pm)

NEW DELHI: India-based ethnic wear retail chain Fabindia has acquired 25 per cent stake in the UK-based womenwear retailer EAST.

Fabindia finance director Sunil Chainani will join the EAST board.

Fabindia managing director William Bissell said, "The synergy between the two is apparent not only in the product but also in the approach and sourcing."

The aquisition amount has not been disclosed by Fabindia. However, the valuation could be on the lower side with the sales in UK decreasing. The investors in EAST include Luke Johnson, the Channel 4 chairman and John Singh of Jaipur.

EAST with 77 outlets, which includes selling through 18 John Lewis stores, has annual revenues of £30 million.

Fabindia presently has revenues of about Rs 3 billion. The retail chain is in a rapid expansion drive and plans to expand the number of stores to 250 by 2010 from the present 80-85 stores.

It had also recently introduced a line of craft-based jewellery to expand its customer base.

EAST's network will allow Fabindia to sell its garments in UK as the retailer already has a presence in the Gulf with stores in Dubai, Bahrain and Qatar.

Fabindia got a valuation of $184 million in 2007 when WCP Mauritius Holdings, run by former World Bank president James Wolfensohn, paid $11 million for a 6 per cent stake in the company.