TPG Growth, the growth equity platform of American investment firm TPG, and QRG, the family office of the promoters of Havells Group, acquired a significant minority stake in casual sports and footwear brand Campus Activewear.
The actual stake purchased and the money invested were not disclosed, but sources said they picked a 20% stake valuing the company at Rs 1,500 crore. As part of the transaction, Puneet Bhatia, partner and country head at TPG, and Anil Rai Gupta from the HavellsBSE 0.26 % Group will join Campus’ board, the companies said in a joint release.
This is the second time TPG and QRG have come together to acquire a stake in a company. Their first joint investment was in micro finance company Janalakshmi Finance.
Of the 20% they acquired, TPG will hold most of the stake, a person with direct knowledge of the transaction said. Started in 2006, Campus is one of the leading players in organised sports and casual footwear sector in India. The company’s products are available through a network of over 15,000 multi-brand retail stores, company-owned exclusive outlets and ecommerce portals. It is promoted by HK Aggarwal, who in 1983 had founded the ‘Action’ brand, which became a household name in the casual and sports footwear segment in India. “Our nation’s growing population — across all ages — desires affordable, high-quality footwear,” Campus chief executive Nikhil Aggarwal said.
“Leveraging the resources, on-the-ground knowledge and business building experience of our new partners at TPG Growth and QRG, we become even better equipped to provide India’s consumers with the footwear that carries them through their day-to-day.” Campus currently offers more than 800 product designs across the casual, sport, school and sandal shoe categories. The company has an integrated business model with in-house design, prototyping, manufacturing and distribution capabilities.
“Driven by an increased attention to health and wellness and growing preferences for casual, multi-use shoes, India’s sports and footwear market is growing quickly,” said TPG’s Bhatia. “Campus is very well-positioned to lead this market. The company has created a trusted, far-reaching brand with significant growth potential.”
TPG has a history of partnering with consumer and retail companies globally. Its investments across platforms have included Lenskart, an Indiabased eyewear platform; Ducati, a European designer, manufacturer, and distributor of sport motorcycles; and Li-Ning, a Beijing-based sportswear brand. The firm has been investing in India for nearly a decade and half and has partnered with companies across a wide range of industries, including Janalakshmi, Healthium Medtech, Manipal Health, and Vishal Megamart.
Source: Economic Times