Mid-market consumer and healthcare-focused fund Lighthouse Funds, has invested Rs 229 crore in luggage maker Safari Industries through its recent fund Lighthouse India Fund IV AIF.
Safari marks the second investment by Lighthouse from its newly raised fourth private equity fund.
Sachin Bhartiya, co-founder and partner at Lighthouse Funds said: “The Indian luggage market is a beneficiary of increasing leisure travel and wedding spends. Over the past decade, we have seen dramatic upgrades in rail and road connectivity and significant growth in the aviation sector.”
He said given India’s high tourism potential, structural tailwinds are visible for the sector. “Safari is positioned to capture this opportunity with expanding discretionary spends and changing aspirational consumer behaviour in favour of branded luggage,” Bhartiya said.
Sudhir Jatia, chairman and managing director of Safari Industries said in a statement that the luggage maker will leverage Lighthouse’s experience as it penetrate deeper into the Indian market.
While the Indian luggage market remains significantly unorganised, the category is riding on a booming travel and tourism industry. According to ratings agency Crisil, the domestic luggage market is estimated at Rs 15,000 crore, with organised players having 40% share. “Organised luggage makers are set to double capacity and ramp up retail presence by 35-40%, drawing up total capital expenditure of Rs 700 crore this fiscal,” Crisil said in a report.
On February 29, Safari Industries said in a stock exchange filing that its Board of Directors approved the allotment of 12 lakh fully paid up equity shares of face value Rs 2 each to Lighthouse India Fund IV AIF.
Lighthouse’s marquee investments include leading Bikaji Foods, Nykaa, Fabindia and Ferns N Petals.
