LVMH Close To Acquiring $100 M Stake in Gitanjali

LVMH wants a piece of this business

(IDEX Online News) - LVMH is in advanced stages of acquiring a stake in the Gitanjali Group for $100 million, according to an LVMH executive. Ravi Thakran, LVMH group president for South Asia, South-East Asia and the Middle East told the Hindustan Times, “The talks with Gitanjali Capital are at an advanced stage.”

Thakran added that LVMH is already doing the due diligence. “We are looking at their branded business,” Thakran said, however he did not disclose what percentage of Gitanjali’s equity the proposed investment represented.

Gitanjali Group Chairman Mehul Choksi confirmed to IDEX Online that LVMH was indeed in stake acquisition talks, but declined any further comment on the subject.

The prospective stake acquisition in Gitanjali will be through L Capital Asia, LVMH’s $650 million equity fund that was launched last year to invest in the region’s emerging economies. The fund plans to invest 80% of its capital in India and China. It has studied 108 consumer companies in the Asian region.

According to Thakran, the fund was also in the advanced stages of acquiring an approximately $40 million stake in an Indian fashion house. The fashion firm was not named as negotiations are bound by a non-disclosure agreement.

One sector the fund is keen to invest in is beauty and wellness brands inspired by Ayurveda, the traditional Indian system of medicine. Thakran noted, “In western markets, people are going natural and organic. There is great growth potential in this area.”