After buying a 10 per cent stake at Chinese fashion brand Ochirly, LVMH’s private equity arm L Capital has now bought a share of Indian ethnic wear chain Fabindia.

L Capital invested around 14 billion rupees (US$283 million) for eight per cent of Fabindia from its stakeholder Wolfensohn Capital Partners, a venture capital fund of former World bank president James Wolfensohn, which purchased his share for US$10 million in 2007.

“The deal is done. A formal announcement is expected shortly,” said a source close to the negotiations.

Fabindia retails garments, furnishings, fabrics, home products, organic foods, and personal care handmade by craftspeople across rural India. From its beginning in 1960, it now has more than 135 stores across India and overseas.

LVMH invested in India last year taking a 25.5 per cent stake in Genesis Luxury Fashion which markets and distributes luxury brands.

LVMH’s acquisitions in China and India are part of the conglomerate’s US$640 million fund launched last year intended for buying businesses in key markets.

LVMH foresees excellent growth for this year particularly in Asia.

GB