Dixcy’s Founder and Managing Director Prem Prakash Sikka will retain a stake in the company and continue as the chairman following the completion of the transaction, said a company statement.
Founded in 1982, Tirupur-based Dixcy is the exclusive manufacturer and marketer of several leading innerwear brands, including Dixcy Scott, Dixcy Scott UNO, Dixcy Josh and Dixcy & Slimz. The company also sells a premium range of products including casual wear such as track pants, shorts and polo t-shirts.
Additionally, Dixcy has begun to expand internationally by placing its products in stores across the Middle East and Singapore, stated the company release. The company employs over 3,500 people and generated sales of Rs 780 crore (US $120 million) in fiscal year 2017.
“We look forward to working with Advent to further expand the business, following a twin-pronged strategy involving organic growth from the existing offerings and expanding internationally to newer geographies,” said Director of Dixcy, Raghul Sikka.
“The innerwear market in India is expected to grow at double-digit rates over the next five years, driven by increased per capita spending and consumer demand for higher quality products,” said Managing Director and Head of India for Advent International, Shweta Jalan.
We see significant opportunities to create value by investing in distribution, sales and product innovation, and improving procurement and production efficiency, Jalan added.
Advent International has significant investment experience in the retail, consumer and leisure industry. Over the past 27 years, the firm has invested more than US $9 billion in 71 companies in the sector worldwide.
The transaction is Advent’s fourth investment in India since 2015 following its purchase of equity stakes in Crompton Greaves Consumer Electricals, QuEST Global Services and ASK Group. Advent has been investing in India for 10 years and opened an office in Mumbai in 2009.
Avendus Capital was the financial advisor and Khaitan & Co was the legal advisor to Dixcy on the transaction. AZB & Partners was the legal advisor to Advent International.