NEW DELHI — Fabindia managing director William Bissel stood inside Bandhej’s 1,800-square-foot store bursting with color and handcrafted styles and talked about the new investment his company has made with admiration.
“It is a step towards luxury,” he said, “where every piece is unique. Fabindia does not do these price points, so it complements what we do perfectly.”
Fabindia has taken a 51 percent stake in the retailer.
When L Capital, the investment arm of LVMH Moët Hennessy Louis Vuitton, invested in Fabindia in 2012, it was with the faith that the brand would grow substantially. The investment in Bandhej, which has eight stores in different parts of India, is a clear step forward in growing its market share in a different segment.
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Fabindia also has stakes in three other companies, including U.K.-based East in which it owns a majority; Hong Kong-based Tabla, and a strategic partnership with Organic India in 2013, which manufactures organic, herbal and ayurvedic health products.
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Fabindia itself has been growing fast — it now has 175 stores in 73 cities across India and six stores in international markets. The first Fabindia store opened in 1976, in New Delhi, although the company started in 1960 as an export house for Indian hand woven textiles.
Last April, the brand made a different move to grow its market share, launching its first Westernwear label called Fabels.
Describing the investment in Bandhej as a step towards luxury, Bissel talked about the luxury market in general. “In India we do luxury, but we don’t package it properly, we don’t market it properly and that is an all-important part of the experience — the way it’s put together. It’s a real luxury to have products that are handcrafted like these, so what we’re trying to do is to help Bandhej move to its natural position,” he said.
The brand sees 20 to 30 stores in the next three years, according to Archana Shah, who started Bandhej in 1981 in Ahmedabad, where she is still based and where three of the eight stores are located.
“We never wanted a national presence earlier, but now we’re looking at things differently,” Shah said. “When we started our business, there wasn’t such a retail concept but now the market is crowded, but still we have a niche. We’re not in the fashion business but we do clothes that people like, our silhouettes are very ‘now,’ they are simple and elegant. Our fabric is really our story.”