Stanley Lifestyles, a Bengaluru-based leather manufacturer, closed its first round of private equity funding with $24 million (Rs 1.7 billion) for a 26 per cent stake sale to Oman India Joint Investment Fund (OIJIF).
OIJIF is backed by Oman’s sovereign wealth fund State General Reserve Fund and the State Bank of India, and has closed $250 million for its second fund. Prior investments include stakes in NCDEX, ING Vysya Bank, Annapurna Finance, and GSP Crop Science. Investments typically range between Rs 1 billion and Rs 2 billion.
Sunil Suresh-led Stanley Lifestyles makes high-end leather furniture, does contract manufacturing for Ikea and La-Z-Boy, in addition to making leather accessories for the auto industry across three factories in Bengaluru and Mysuru.
Its products are retailed in 16 stores across Indian metro cities, 10 of which are company-owned and the rest run through franchises.
Stanley also set up a premium 100,000 square foot mall in Bengaluru in 2016 to sell furniture.
Emails sent to Stanley and OIJIF didn’t elicit reply till the time of going to press.
A person familiar with the deal said the private equity funding, a first for the company, would be used to fuel growth across India as well as help the firm set up stores overseas.
According to the Council of Leather Exporters and other industry experts, the overall leather trade is estimated to be worth around Rs 900 billion, while Forrester Research points to the Indian furniture market, which is mostly unbranded being valued at around Rs 1.7 trillion.