TA ASSOCIATES, a global growth private equity firm, has invested in a US$140 million round for a minority stake in TCNS Clothing Company, a branded women’s apparel platform from India.
Headquartered in New Delhi, TCNS Clothing designs, manufactures and sells contemporary ethnic wear, targeting women between the ages of 25 and 40. Through its three brands — W, Aurelia and Wishful — TCNS operates across the value chain from economy to premium segments. The brands are present in more than 1,600 points of sale across India, Mauritius, Sri Lanka and the Middle East, and in some 300 exclusive stores in more than 100 cities. In addition to the physical stores, the three brands have a strong presence across large multi-brand retailers and online portals.
“The women’s ethnic apparel market in India is largely unorganised and is undergoing a shift towards organised and branded. As the leader in branded women’s
apparel, TCNS Clothing is driving this shift and providing the Indian consumer with a differentiated product and value proposition across its multiple apparel brands,” said Naresh Patwari, a director at TA Associates’ Mumbai office, who will join the TCNS Board of directors.
He added: “We are very excited about partnering with O S Pasricha, founder of TCNS Clothing. With Anant Daga as the CEO and a very strong management team, we believe that TCNS is well prepared to capture this large, long term growth opportunity.”
TCNS is said to be a pioneer in scientific sizing with seven sizes, the introduction of the iconic knit churidar (tightly fitting trousers worn by men and women in the Indian subcontinent) and smaller width stoles, making functional fashion available for the everyday woman.
The three TCNS Clothing brands — W, Aurelia and Wishful — offer a variety of fashion choices, ranging from ethnic to contemporary. W is the first Indian women’s brand to have some 200 stores and Aurelia is available through more than 100 stores. “TCNS has enjoyed great success over the past five years and we are proud to have become India’s leading women’s apparel company,” added O S Pasricha, founder and chairman, TCNS Clothing Company. “We are pleased to have TA Associates as our partner for the next phase of our growth, and are delighted to welcome TA to our company and to our board. We look forward to a close, long-term collaboration.”
The Indian women’s apparel market is predicted to reach approximately US$20 billion in 2020, up from US$13 billion in 2015, a compound annual growth rate of 10%, according to Avendus Capital. The branded portion of this market, approximately 17% in 2015, is expected to surpass 38% over the next 10 years.
“There has been a notable shift in the Indian womenswear segment and, over the next five years, we expect to see the rise of large and dominant Indian womens’ wear brands in the country,” said Anant Daga, CEO, TCNS Clothing Company. “We are in an exciting phase of our journey, and despite TCNS being the leading branded womenswear player in India, we believe there are a plethora of opportunities ahead.
“Apart from organic growth, we see significant avenues for continued expansion through the introduction of additional womenswear brands and other complementary offerings, as well as expansion into additional international markets. With TA’s experience in consumer sector and fashion, we believe this partnership will add immense value to the strategic and operational direction of TCNS,” said Daga.