Manyavar owner to discuss acquisition of Soch and build a brand 'Mohey'

Manyavar owner Vedant Fashions has joined the fray to discuss a possible acquisition of ethnic womenswear brand Soch in a deal valued at slightly over Rs 1,000 crore.

If successful, the deal-making would provide Vedant a strong presence in the womenswear market, where it has been trying to build a brand called Mohey.

One of the most profitable Indian fashion companies, Vedant has around Rs 550 crore in top line revenue, while Soch reportedly closed last fiscal with about Rs 350 crore.

The Bengaluru-headquartered MD Retail, the parent of Soch, has been in parallel talks with private equity investors and Vedant Fashions for a share sale, though some investors will be keen on investing in a merged entity, sources said.

Sources said Vedant is discussing a private placement of shares with two investors to finance the transaction, but it may go ahead with a small share sale to private equity investors irrespective of the deal outcome.

The low-profile Ravi Modi has resisted investor overtures in the past citing highly profitable operations. Manyavar boasts of being a brand which doesn’t offer discounts and tightly manages expenses.

The softening costs saw the brand, backed by Virat Kohli as brand ambassador, embark on an expansion drive, which is projected to touch 700 stores and over a million sqft of retail space by 2020.