Marh 4: Lighthouse Funds, a private equity firm that invests in consumer and healthcare sectors, has announced its investment of Rs 229 crore in Safari Industries (India) Limited, a leading luggage manufacturer in the country. The investment was made through Lighthouse Fund IV AIF, which has a target corpus of Rs 3,500 crore.
This is the second deal from the fund, which received a commitment of Rs 400 crore from National Investment and Infrastructure Fund Ltd’s Fund of Funds in January 2023. The fund had earlier invested Rs 284 crore in Kushal’s, a fashion jewellery brand, in February 2023.
According to fund spokesperson it sees a huge opportunity for Safari Industries to tap into the growing tourism potential of India, which is driven by rising disposable income and changing consumer preferences for branded and aspirational luggage products.
“India’s tourism potential is huge, and we see structural tailwinds for the sector. 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,” said Sachin Bhartiya, Co-founder and Partner at Lighthouse Funds.
Safari Industries, which was founded in 1974, offers a range of luggage products such as hard and soft luggage, backpacks, duffle bags, and accessories. The company has a pan-India distribution network of over 600 dealers and 10,000 retail outlets. It also sells its products online through its own website and e-commerce platforms.
Safari Industries Set to Develop and Introduce More Brands with Lighthouse Funds
Safari Industries welcomed its new investor and said that it will leverage the firm’s expertise in building high-quality brands to expand its market share and reach in the Indian luggage market, which is still largely dominated by unorganised players.
“We are delighted to welcome our new investor into Safari. Indian luggage market still remains highly unorganised, and we intend to leverage our new investor’s experience in building high-quality brands as we penetrate deeper into the Indian market,” said Sudhir Jatia, Chairman and Managing Director of Safari Industries.
The investment firm, which was founded in 2006, has been investing in India since 2007 and has backed over 30 companies across consumer and healthcare segments. Some of its portfolio companies include Nykaa, Fabindia, Ferns N Petals, and Unibic Foods.
The fund had earlier invested in VIP Industries, another luggage maker, and exited with a 3.5X return in 2011. In September 2023, Bahrain-based Investcorp also exited from Safari Industries with a 3.8X return, after investing Rs 75 crore in 2021.
