Vedant fashions in talks to acquire Mebaz

By

Maverick Martins

Published
Aug 31, 2017

Vedant Fashions Pvt Ltd is in talks to acquire Hyderabad-based rival ethnic wear brand Mebaz in order to strengthen its position in the lucrative women’s wear market in India.

After the success of Manyavar, Vedant Fashions is keen to tap the ever growing ethnic womenswear segment in the country and also on building its in-house brand, called Mohey. If Vedant Fashions acquires Mebaz which is a leading ethnic fashion brand, it will give the company a dominant share of the market.
 
During year ended March 2016, Vedant Fashions had posted a 22 per cent rise in sales at Rs 504 crore with net profit of Rs 90 crore, giving Manyavar the tag of the most profitable Indian brand.

The women’s segment currently accounts for an overwhelming 87% of the total ethnic wear market at INR 54,425 crore (USD 10.26 billion). The women’s wear segment alone is expected to grow at a steady rate of 8% over the coming decade, according to a report by consulting firm Technopak.
 
To tap the booming womenswear segment, Vedant Fashions was earlier in talks with another ethnic wear brand Soch however talks between the two firms failed to materialise. Since then Soch has moved on expanding its presence across the country leaving Vedant to look for other options.
 
Vedant Fashion is closing in on the acquisition of Mebaz and the deal is likely to be sealed later this year, the Mint reported citing anonymous sources.
 
Mebaz was set up by Devanand P. Jethwani in 1971 and currently has about 18 stores across Telangana, Andhra Pradesh, Karnataka, New Delhi and Ahmedabad.