Models present creations by Indian fashion designer Anita Dongre during the FDCI India Couture week 2016. Photograph: (AFP)
The brands that have currently won investor confidence are from the house of Arvind Ltd, Biba apparels, Ritu Kumar and Anita Dongre
With Indian fashion businesses becoming a part of the larger consumer story that investors are betting on, the brands are attacting overwhelming valuations.
According to recent market reports, India stands second amongst all nations in the global consumer confidence index.
Global corporations are now viewing the South Asian country as one of the key markets from where future growth is likely to emerge and see an uptick in demand going forward on the back of rising consumer disposable income.
The PE funds investing big bucks in fashion brands include Everstone capital, Warburg Pincus, General Atlantic and Multiples Private Equity.
The brands that have currently won investor confidence are brands from the house of Arvind Ltd, Biba apparels, Ritu Kumar and Anita Dongre to name a few. For instance, textile manufacturer Arvind Ltd company has made a 10 per cent stake sale to multiples private equity at INR 740 crores.
A study by McKinsey has suggested that if India holds forth with the current pace, average household incomes will triple over the next two decades. This would make India the world's fifth largest consumer economy by 2025 from the current 12th position.