Indian ethnic wear brand Soch Apparel is in talks with private equity players to raise funds by selling up to 30 percent stake in the company as it looks to fuel its expansion across India in the company years.
Soch is hoping to close the deal with the investors by 2020 and plans to add as many as 40 stores provided the talks with investors get materialised.
“We are looking at 26-30 percent stake sale. We are still in talks with two or three PE entities. The company is in the take-off stage and will be able to double its equity value in two years,” the managing director of Soch, Manohar Chatlani, told Moneycontrol.
“If the funding happens then 40 more stores will be opened and if the funding does not happen then 10 stores via franchise route and 10 via the company. Currently, there are 126 Soch brand stores and we look to expand to 150 by the end of FY20,” Chatlani added.
Soch will focus mainly on the south Indian market for the opening of its stores followed by North and East India as it looks to cash in on the booming women’s ethnic wear market estimated to be around Rs 54,425 crore ($10.26 billion).
Soch is a multi-brand boutique that also has its own private labels. The brand specialises in Indian traditional wear such as kurtis, sarees, and dress sets for both formal and casual occasions. It is operational through its EBOs and shop-in-shops across 39 cities across India.