General Atlantic set to leave House of Anita Dongre
House of Anita Dongre (HOADPL) is initiating a buyback of its nearly 40% stake from US private equity firm General Atlantic (GA), executives aware of the development said. GA had acquired the stake in the owner of brands such as AND and Global Desi in the women's wear category about nine years ago. According to reports then, the PE firm had invested nearly ₹150 crore in Dongre's company in 2015.
«There is continued uncertainty over recovery in revenue and earnings in the coming quarters due to weak demand growth outlook and reduction in Anita Dongre's scale of operations,» rating agency ICRA said in a January report on HOADPL. The report expects the company's revenue to decline to ₹500-₹550 crore in FY24 and FY25, from ₹606 crore in FY23, with an annual operating profit margin of 19-20%. The company is yet to file its FY24 earnings.
A fashion retail veteran said brands like AND and Global Desi went from premium to mass and discounted heavily on online channels. «The product was reengineered as a result and lost its lustre in the process. Profit margins in the fashion industry should be robust so that it can be reinvested in the brand,» the person said.
An email sent to the office of Anita Dongre did not elicit a response. GA declined to comment.
Founded in 1995 by Anita Dongre, Meena Sehra and Mukesh Sawlani, House of Anita Dongre was among the first fashion houses in India.
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