Global private equity firm Advent International
on Thursday announced that it has agreed to acquire a significant ownership interest in Dixcy
Textiles Pvt Ltd.
is a leading innerwear
brand in India. Dixcy’s Founder and Managing Director, Prem Prakash Sikka, will retain a stake in the company and continue as the chairman following the completion of the transaction.
Financial terms of the deal were not disclosed.
Located in Tirupur, Dixcy
was founded in 1982 by Mr Sikka with a vision of creating a strong brand that caters to all segments of the innerwear
and hosiery market.
Today, it is the exclusive manufacturer and marketer of several leading innerwear
brands, including Dixcy
Scott UNO, Dixcy
Josh and Dixcy
The company also sells a premium range of products including casual wear
such as track pants, shorts and polo t-shirts. Additionally, Dixcy
has begun to expand internationally by placing its products in stores across the Middle East and Singapore.
Through its network of more than 1,000 distributors, Dixcy
supplies products to over 120,000 retail outlets across the country. The company employs over 3,500 people and generated sales of around Rs 769 crore (US$120 million) in the financial year 2017-18.
“We are excited to partner with Advent, a leading global investor with a strong knowledge of the Indian market and significant experience in the retail and consumer sector,” said Prem Prakash Sikka.
Raghul Sikka, Director of Dixcy, added: “We look forward to working with Advent to further expand the business, following a twin-pronged strategy involving organic growth from the existing offerings and expanding internationally to newer geographies.”
is a well-positioned brand with a strong distribution network in an attractive industry,” said Shweta Jalan, Managing Director and Head of India for Advent International.
market in India is expected to grow at double-digit rates over the next five years, driven by increased per capita spending and consumer demand for higher quality products. We see significant opportunities to create value by investing in distribution, sales and product innovation, and improving procurement and production efficiency.”
has significant investment experience in the retail, consumer and leisure industry.
Over the past 27 years, the firm has invested more than $9 billion in 71 companies
in the sector worldwide.
Advent has been investing in India for around 10 years and opened an office in Mumbai in 2009. Recent investments include Crompton Greaves
Consumer Electricals, India’s premier supplier of consumer electrical goods, lighting and lighting automation systems; QuEST, a global engineering solutions provider; and ASK Group, a leading wealth and investment management business.