MUMBAI, 28 December 2010, MINT (A partner to the Wall Street Journal)
\n Sapna Agarwal <\/p>\n
The Bindra family, the owners of Biba Apparels Pvt. Ltd, which \n owns a popular women’s ethnic wear brand of the same name, \n is on the verge of splitting, said a person directly involved \n in the development, who did not want to be identified till the \n details are made public.<\/p>\n
Sanjay Bindra, 45, will sell his stake for around Rs 75 crore \n in an all-cash deal, added this person.<\/p>\n
Siddharth Bindra, 36, confirmed that Sanjay Bindra was exiting \n the business and added that he would be buying his brother out. \n He declined to speak about the specifics till the transaction \n is complete.<\/p>\n
The Kishore Biyani-promoted Future Ventures India Ltd owns an \n 18% stake in Biba that it acquired in 2006 for an undisclosed \n amount. The Bindras own the rest of the privately-held firm. The \n individual stakes of Sanjay and Siddharth aren’t known; privately-held \n firms do not have to disclose their shareholding pattern.<\/p>\n
Biba, founded 22 years ago by the brothers’ mother Meena \n Bindra, ended the year to March with revenue of Rs 180 crore and, \n according to the person cited in the first instance, will end \n the year to March with revenue of around Rs 200 crore.<\/p>\n
Meena Bindra started the business in 1988 with a bank loan of \n Rs 8,000, selling ethnic wear from home. Sanjay joined the family \n business in 1994 and Siddharath, in 2002; soon after the firm \n started film merchandising, creating special clothing lines for \n Bollywood films.<\/p>\n
Biba’s clothing is available in 100 retail outlets across \n 25 cities, according to its website.<\/p>\n
Sanjay Bindra is still on the board of Biba Apparels but he has \n already started work on his new company, which is likely to sell \n ethnic-wear apparel under the brand “7 East”, the person \n cited in the first instance said.<\/p>\n
“The company will be launched by mid-March with 18 stores \n and 60 shop-in-shop stores. The 7 East brand will look at tie-ups \n with designers such as Manish Malhotra, known to style Bollywood \n celebrities, and other international designers,” he added.<\/p>\n
In 2009, the market for domestic apparel was worth Rs 1.54 trillion \n and is expected to reach Rs 4.7 trillion by 2020, according to \n India Textile and Apparel Compendium 2010 published by Technopak \n Advisors, a retail consulting firm.<\/p>\n
It is a highly fragmented market with few significant brands \n such as Biba, Ritu Kumar and private labels from retailers such \n as Trent Ltd’s Westside and Future Group’s Pantaloons.<\/p>\n
The organized apparel market is expected to grow from 14% at \n the end of 2009 to 40% by end of 2020, said the report.<\/p>\n
Unlike the Western market, customer preferences for Indian \n ethnic wear vary across the length and breadth of the country, \n making it difficult for brands to establish themselves nationally, \n said Devangshu Dutta, founder of retail consulting firm Third \n Eyesight, explaining why very few brands have succeeded.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
MUMBAI, 28 December 2010, MINT (A partner to the Wall Street Journal) Sapna Agarwal The Bindra family, the owners of Biba Apparels Pvt. Ltd, which owns a popular women’s ethnic wear brand of the same name, is on the verge of splitting, said a person directly involved in the development, who did not want to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1949","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"\n