CX Partners to invest Rs 300 crore for stake in ethnic brand Soch

By

Maverick Martins

Published
Nov 12, 2018

​Private equity firm CX Partners will be investing Rs 300 crore ($41.2 million) in the acquisition of a significant stake in Indian women’s ethnic wear brand Soch.
 

The investment will fetch CX Partners approximately a 30-percent stake in the ethnic wear brand, according to a Times of India report.
 
Soch is a multi-brand boutique that also has its own private brand of the same name. The brand specialises in Indian traditional wear such as kurtis, sarees, and dress sets for both formal and casual occasions.

The Indian ethnic wear market is currently estimated to be around Rs 61,679 crore (11.63 billion) with the women’s segment contributing Rs 54,425 crore ($10.26 billion) to the same, according to a Technopak report.
 
The women’s wear segment alone is expected to grow further a steady rate of 8 percent in the coming years. So it is no surprise that investors are turning to ethnic wear to cash in on the growth in this segment.
 
Soch had opened its first exclusive store in Bengaluru’s Forum Mall in 2005. Today, Soch has 100 EBOs and 47 LFS stores currently operational across 39 cities including metros like Bangalore, New Delhi, Mumbai, Chennai, and Hyderabad.
 
Soch is further planning to expand its presence across the country and will be adding 30-40 new stores every year. The brand is eyeing tier 2 markets for growth and has plans to enter international markets in the current fiscal year.