Catmoss Retail Pvt Ltd reported it had disposed off its minority stake to Hong Kong based firm, SAIF Partners. Catmoss Retail Pvt Ltd is a retailer of kids wear in India and the announcement stated that the firm had sold its minority stake for Rs 100 crore.
Catmoss Retail further said the move was targeted at enabling it grow and expand its business in the Indian retail sector. The move is a stake dilution aimed at enhancing its strategy for future growth and enhanced business, added the firm. In return, the Hong Kong based SAIF Partners is expected to land a considerable minority stake in the retail firm.
Catmoss Retail is a foremost retailer of kids wear in India, dominating the fast burgeoning organized kids wear industry in the country. Catmoss Retail expects the investment move will enable it expand its product offering and reinforce its command in the retail sector in India to almost double what it is currently. The company operates 170 exclusive stores, 125 shop-in-shops all over the country and an additional 300 multi-brand retail stores.
Other than that, the New Delhi based Catmoss Retail said the funds accrued from the sale will go into the establishment of a new plant unit in Noida. Moreover, the raised funds will into opening an additional 150 stores by the year 2012, said Ashwani Chawla, Catmoss Retail chairman and managing director.
Catmoss reiterated that its plans for expansion target India’s cities and towns. About 70% of the stores to be opened will be directly owned and run by Catmoss Retail whereas the remaining 30% will be run via a franchise approach. The new production plant to be set up in Noida is expected to have an operating capacity of 15,000 pieces every day. Its facility in New Delhi produces some 6,000 pieces per day.
Currently, Catmoss Retail is valued at about Rs 500 crore and SAIF Partners said it was delighted at the prospects the deal portends. Catmoss Retail has built a reputation in the Indian kids wear retail market and it is expected that the new investment will help bolster its operations further.
Catmoss Retail Ltd. began its journey in 2004, with a dream of pioneering in the kids wear segment, wherein today’s trend and style is made available at affordable prices.
The Brand has Pan India presence through its Exclusive outlets that are present in leading Malls, High Streets and other upcoming markets.