After Ambani’s and Birla’s, Goenka’s enter the Indian luxury apparel market

New Delhi: RPSG Ventures Ltd, part of the RP-Sanjiv Goenka Group, on Wednesday approved the acquisition of a 40% stake in FSP Design Pvt. Ltd, the company behind the luxury fashion label Falguni Shane Peacock (FSP), is marking its formal entry into India’s luxury apparel and lifestyle market.

The deal is based on an enterprise valuation of ₹455.17 crore, subject to post-closing price adjustments as specified in the share subscription and purchase agreement (SSPA).

RPSG Ventures said, in a filing, that its Board of Directors, at a meeting on Tuesday, cleared the execution of a share subscription and purchase agreement and a shareholders’ agreement (SHA) with FSP Design and its promoters—Falguni Shane Peacock, Shane Jude Peacock, Hemen Rashmi Vimadalal and Siddharth Bharat Gandhi. RPSG Ventures will acquire the 40% stake by buying new shares and shares from current owners.

“Indian craftsmanship and contemporary design deserve a global stage. FSP has the brand equity, the authenticity and the creative depth, and we are proud to support this next phase of its growth,” said Shashwat Goenka, vice chairman, RPSG Group.

The company will also retain the right to acquire an additional 10% stake in FSP Design within 18-24 months of the completion of the initial transaction, allowing RPSG Ventures to increase its total holding to 50% over time, per the filing with BSE.

The investment in FSP marks RPSG Ventures’ push into the luxury couture segment and is a key step in its strategy to build a differentiated portfolio across the luxury fashion and lifestyle space.

Founded in 2019 in Mumbai, FSP Design is engaged in designing, manufacturing and distributing luxury couture and accessories under the Falguni Shane Peacock brand.

FSP reported revenue from operations of ₹91.75 crore in FY25, up from ₹76.50 crore in FY24 and ₹68.50 crore in FY23, with sales spread across India and overseas through exclusive stores, multi-brand outlets and online platforms.

RPSG Ventures operates a diversified portfolio across IT services, business process management, FMCG (including ayurvedic and wellness products), real estate and sports.

In FY25, the company reported total income of ₹9,645 crore and profit after tax of ₹164.4 crore.

Indian designers have increasingly been selling partial or full stakes to large business houses in an effort to scale and expand their physical presence. This has been especially true post-pandemic, when lockdowns temporarily halted the wedding market and related businesses. As a result, many investors acquired stakes in homegrown labels in a bid to support and grow their businesses.

In January 2021, Aditya Birla Fashion and Retail acquired 51% in Sabyasachi Mukherjee’s fashion house for about ₹398 crore, followed by a 33.5% stake in Tarun Tahiliani’s couture label in February for ₹67 crore. In the same year, Reliance Retail Ventures Ltd (RRVL) acquired a majority stake in fashion designer Ritu Kumar’s Ritika Pvt. Ltd. In 2022, Aditya Birla Fashion and Retail also acquired a 51% stake in House of Masaba.

Meanwhile, RPSG Group’s investment in FSP will accelerate its long-term growth strategy, enabling the brand to expand across key markets, diversify into new categories, and enhance organisational scale, per a company announcement.

Falguni Peacock, co-founder and creative director of FSP, said the partnership would help the brand’s global ambitions.

The transaction is subject to customary closing conditions.

India’s market for wedding and occasion wear is significant, given the sheer number of weddings and the young population.

Households also traditionally save up and expand their budgets to spend on weddings, buying gold, clothing, and footwear, among other things.

The Indian wedding industry reached $75 billion in the 2023-24 wedding season, according to a Mint report from last year.