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TA Associates invests $140 mln in India women’s apparel maker TCNS

TA Associates has acquired a minority stake in TCNS Clothing for $140 million. Avendus Capital provided financial advice to TCNS Clothing on the transaction. Based in New Delhi, India, TCNS is a maker of women’s apparel.


BOSTON & NEW DELHI–(BUSINESS WIRE)–TA Associates, a leading global growth private equity firm, today announced that it has invested in a US$140 million round for a minority stake in TCNS Clothing Company Pvt. Ltd., India’s leading branded women’s apparel platform.

Headquartered in New Delhi, TCNS Clothing designs, manufactures and sells contemporary ethnic wear, targeting women between the ages of 25 and 40. Through its three brands – W, Aurelia and Wishful – TCNS operates across the value chain from economy to premium segments. The brands are present in more than 1,600 points of sale across India, Mauritius, Sri Lanka and the Middle East, and in over 300 exclusive stores in more than 100 cities. In addition to the physical stores, the three brands have a strong presence across large multi-brand retailers and online portals.

“The women’s ethnic apparel market in India is largely unorganized and is undergoing a shift towards organized and branded. As the leader in branded women’s apparel, TCNS Clothing is driving this shift and providing the Indian consumer with a differentiated product and value proposition across its multiple apparel brands,” said Naresh Patwari, a Director at TA Associates’ Mumbai office who will join the TCNS Board of Directors. “We are very excited about partnering with Mr. O.S. Pasricha, Founder of TCNS Clothing. With Anant Daga as the CEO and a very strong management team, we believe that TCNS is well prepared to capture this large, long-term growth opportunity.”

“TCNS has enjoyed great success over the last five years and we are proud to have become India’s leading women’s apparel company,” said Mr. O.S. Pasricha, Founder and Chairman, TCNS Clothing Company Pvt. Ltd. “We are pleased to have TA Associates as our partner for the next phase of our growth, and are delighted to welcome TA to our company and to our Board. We look forward to a close, long-term collaboration.”

“There has been a notable shift in the Indian womenswear segment and, over the next five years, we expect to see the rise of large and dominant Indian womenswear brands in the country,” said Anant Daga, CEO, TCNS Clothing Company Pvt. Ltd. “We are in an exciting phase of our journey, and despite TCNS being the leading branded womenswear player in India, we believe there are a plethora of opportunities ahead. Apart from organic growth, we see significant avenues for continued expansion through the introduction of additional womenswear brands and other complementary offerings, as well as expansion into additional international markets. With TA’s experience in consumer sector and fashion, we believe this partnership will add immense value to the strategic and operational direction of TCNS.”

The Indian women’s apparel market is predicted to reach approximately $20 billion in 2020, up from $13 billion in 2015, a compound annual growth rate of 10%, according to Avendus Capital. The branded portion of this market, approximately 17% in 2015, is expected to surpass 38% over the next 10 years.

“TCNS has become a true leader in women’s apparel in India,” said Naveen Wadhera, a Managing Director at TA Associates and Co-Head of Asia who will also join the TCNS Board of Directors. “We believe the TCNS management team has done an exemplary job in expanding the business and diversifying across brands, channels and geographies.”

TCNS achieved consumer sales of more than US$120 million in fiscal year 2016, resulting in 70% year-over-year growth. The Company added almost 100 stores last year and made its international foray with exclusive stores in Sri Lanka and Mauritius.

Avendus Capital served as the exclusive financial advisor to TCNS Clothing. BMR Legal served as legal counsel to TCNS Clothing. AZB & Partners and Goodwin acted as legal counsel to TA Associates. TA Associates Advisory Pvt. Ltd. provided advisory services on the investment.

About TCNS Clothing Pvt. Ltd.
TCNS Clothing Company Pvt. Ltd. (TCNS) is the name behind the evolution of the fashionable contemporary wear brand for women – W. The company is a pioneer in scientific sizing with seven sizes, the introduction of iconic knit churidar and smaller width stoles, making functional fashion available for the everyday woman. The three TCNS Clothing brands – W, Aurelia and Wishful – offer a variety of fashion choices, ranging from ethnic to contemporary. W is the first Indian women’s brand to have over 200 stores and Aurelia is available through more than 100 stores. The brands are also available through 1,600 points of sale across 100 cities in India, Mauritius, Sri Lanka and the Middle East.

About TA Associates
TA Associates is one of the largest and most experienced global growth private equity firms. The firm has invested in more than 460 companies around the world and has raised $24 billion in capital. With offices in Boston, Menlo Park, London, Mumbai and Hong Kong, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the consumer, business services, financial services, healthcare and technology industries. More information about TA Associates can be found at www.ta.c