Future group private equity fund acquires 24% in Lilliput

MUMBAI: Indivision, a private equity fund promoted by Future Capital, the financial services arm of Future Group (Pantaloon Retail) has picked up 24% equity, for an undisclosed amount in Lilliput Kidswear, a leading children’s clothing brand in India. Lilliput is supplier to global apparel manufacturers and retail chains.

The infusion of funds into the largely export-oriented company is expected to help scale up its national presence. Lilliput supplies to retail chains like GAAP, American Eagle, Abercrombie & Fitch, Mother Care, Gloria Vanderbilt, Wrangler, H&M, Carrefour and Primark.

Confirming the move, Future Capital managing director and CEO Sameer Sain said it would push growth rates in an exciting category. “Lilliput is an innovator in children’s wear and Sanjeev Narula, the promoter, is the kind of entrepreneur that Indivision likes to back,” he said.
Set up in 1989, the Delhi-based company was founded by Sanjeev Narula, a first generation entrepreneur, as a manufacturer, marketer and retailer of kidswear in India. Lilliput has eight manufacturing locations in Delhi and NCR and has currently set up 74 exclusive outlets across the country. In addition to these stand-alone stores, it also has a presence in departmental stores like Shoppers’ Stop, Lifestyle, Piramyd and Ebony.

It has licensing agreements with Cartoon Network for merchandise related to popular characters such as Power Puff Girls and Bey-Blade. The company recently expanded its product offering by launching footwear under the Lilliput brand.

An Images-KSA Technopak study estimates the kidswear market in India at Rs 13,085 crore, which is about 15% of the apparel market. The kidswear & uniforms segment has grown at the rate of 14.8% in value terms and 4.9% in volumes in ’05.

There are about 10 to 12 branded players in the Indian market that includes Lilliput, Gini & Jony and Catmoss. Rising affluence levels of the young Indian population along with the heightened awareness of global brands and international shopping experiences is expected to contribute to the success of the sector in India.

Growth of licensed apparel from players like Disney and Mattel has also picked up with the growing popularity of characters on kids’ television channels.