On Monday, the private equity firm Lighthouse said that it had made an investment of Rs 229 crore in the luggage company Safari.
According to an official release, the mid-market consumer and healthcare-focused platform’s investment is the second wager made by its newest fund, Lighthouse India Fund IV AIF. The company did not immediately make it apparent how it planned to use the recently collected money.
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Sachin Bhartiya, a partner and co-founder of Lighthouse, stated that the Private Equity (PE) fund believes there are structural advantages in the travel industry. He also mentioned that the Indian luggage market has benefited from rising spending on weddings and leisure travel.
“Safari is uniquely positioned to capture this opportunity with the confluence of expanding discretionary spends and changing consumer behaviour in favour of branded luggage with aspirational appeal,” he stated.
Chairman and managing director of Safari, Sudhir Jatia, stated that his firm wants to further establish itself in the Indian market, noting that the luggage industry is still “highly unorganised”.
Since its founding in 2007, Lighthouse has made investments in companies such as Fabindia, Ferns N Petals, Nykaa, Bikaji Foods, and Cera Sanitaryware.
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Through its most recent fund, Lighthouse India Fund IV AIF, mid-market consumer and healthcare investor Lighthouse Funds has invested Rs 229 crore in bag manufacturer Safari Industries.
Lighthouse’s second investment from its recently established fourth private equity fund is Safari.He stated that structural tailwinds for the tourism sector are evident given India’s enormous potential for tourism. With rising discretionary spending and aspirational consumer behaviour shifting in favour of branded bags, Bhartiya stated, “Safari is positioned to capture this opportunity.”
Safari Industries’ chairman and managing director, Sudhir Jatia, stated in a statement that the luggage manufacturer will take use of Lighthouse’s expertise as it expands into the Indian market.
Even though the Indian luggage business is still mostly unorganised, the travel and tourist sector is growing. The domestic luggage industry is projected to be worth Rs 15,000 crore, with organised companies holding a 40% share, according to ratings agency Crisil. The Board of Directors of Safari Industries approved the allocation of 12 lakh fully paid up equity shares with a face value of Rs 2 each to Lighthouse India Fund IV AIF, the company stated in a stock exchange statement on February 29.
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Prominent investments made by Lighthouse include Ferns N Petals, Fabindia, Nykaa, and Bikaji Foods. Even with the enormous luggage industry, a sizable chunk of it is still disorganised, which offers Safari a profitable opportunity. Safari’s chairman and managing director, Sudhir Jatia, highlighted the company’s goals to use this investment to further expand its market share in India. With a focus on product innovation and market expansion, Safari hopes that its partnership with Lighthouse will further propel its ambitions to revolutionise the luggage industry.
Renowned mid-market private equity firm Lighthouse specialises on growth investments in the consumer and healthcare sectors. Since 2007, the company has made over 30 investments in consumer and healthcare brands in India. Prominent Indian brands like Wow! Momo, Bikaji Foods, Nykaa, Duroflex Mattresses, Fabindia, Ferns N Petals, Cera Sanitaryware, Dhanuka Agritech, Poly Medicure, Shaily Engineering, Kushal’s Retail, and Unibic Foods are just a few of the notable companies in Lighthouse’s portfolio.
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