PE firm Advent creates 'Modenik Lifestyle Pvt Ltd' by merging Dixcy x Gokaldas
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30th November 2021, Mumbai:
The merged entity to offer consumers essential clothing across all price segments: Modenik Chief Private equity firm, Advent International, has merged its two portfolio companies Dixcy Textiles and Gokaldas Intimatewear Pvt Ltd, in a bid to increase the scale of its innerwear and apparel business.
The combined entity will be called Modenik Lifestyle Pvt Ltd and will be headquartered in Bengaluru. The merger will leverage the operational efficiencies and manufacturing and distribution synergies between the two entities, a top company official said.
Sunil Sethi, Executive Chairman, Modenik Lifestyles Pvt Ltd, told BusinessLine that the merger will enable the creation of a strong platform that will offer consumers essential clothing across all price segments of the economy, mainstream, semi-premium, the premium for both men and women.
He said that the company will leverage synergies in the integrated supply chain, manufacturing, logistics, and go-to-market strategy with a stronger focus on the omnichannel approach.
Strong brands and professionals
“Modenik brings together the talented and creative professionals of both Dixcy and Enamor (Gokaldas) and now boasts a combined strength of 5,000, that includes 1,600 employees and 3,400 labour staff across its manufacturing operations in Tirupur, Kolkata, Bengaluru, and Ludhiana,” the company said.
The merged entity’s portfolio of brands comprises Dixcy Scott Originals, Dixcy Scott Maximus, Josh by Dixcy Scott, Slimz, and Enamor. It also includes Levi’s innerwear, for which the company has an exclusive licensing agreement for manufacturing and distribution in India.
“Despite the second pandemic wave, we saw revenue growth of about 25 percent compared to last year in the April-October period (year-to-date). From July onwards, we have been seeing growth over the pre-pandemic levels. This growth is being fuelled by rising demand for essential and casual wear during the pandemic times,” he added.
The company will enhance its focus on adjacencies such as the athleisure and thermal wear segment. “ As consumers are increasingly moving to branded products by organised players, we will focus on renovation and innovation across our brands such as Dixcy Scott Originals and Dixcy Scott Maximus”, he added.
Meanwhile, the company will also focus on doubling its direct and indirect distribution footprint in the next 18-24 months. “ We have direct distribution across 600 towns and we want to increase it to about 800 towns” Sethi added
BusinessLine (The news article has not been edited by DFU Publications staff)
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