L-Capital Snap Ties With Genesis Luxury

sanjay kapoor_daniel piette_ravi thakranGenesis Luxury is one of the largest players of the luxury business in India and are the franchisee of multiple international luxury brands in India. L-Capital, the Private Equity (PE) arm of LVMH that had invested close to 40% in Genesis Luxury has demanded that its founder either buys out its 40 per cent stake or should sell the luxury brands marketing firm completely.

Ravi Thakran_Managing Partner_L CapitalThe reasons behind L-Capital walking out of Genesis Luxury is primarily the performance of the company. Genesis Luxury made Rs 72 lakh profit for the year ending March 2012 on a revenue of Rs 92 crores. L-Capital also had doubts on the way the financial accounts were handled by Genesis Luxury. Ravi Thakran of L-Capital wanted the accounts of Genesis Luxury be audited by top audit firms like KPMG or Ernst & Young but this recommendation wasn’t paid heed to by Sanjay Kapoor, the man behind Genesis Luxury.

GL_LogoGenesis Colors, the parent company of Genesis Luxury incurred a loss of Rs. 6.75 Crores in the year ending March 2012. Now with L-Capital pulling out its 40% stake in Genesis Luxury, it’s going to be a tough task for Kapoor to keep the company afloat.

5 thoughts on “L-Capital Snap Ties With Genesis Luxury

  1. seema

    Really? Ravi Thakran asked for an audit. There is got to be more than this – he must have wanted to place one of his boys in a management role to be able to control the operations- and build relationship with the brands. Ravi is the king of financial manipulation from his swatch and tag days. So an erring Genesis would not really bother him. Seems more personal than anything else. Do you r homework

  2. Sanjana

    So another luxury player bites the dust. The luxury industry can never make money. Hope L Cap learnt its lesson

  3. Rachna nair

    We never saw a follow up to this story. What was interesting was that L cap made investments without an audit in the first place. Anyone who has been part of genesis could swear that the numbers are fabricated over a glass of wine between sanjay and the investors. Sure Thakran had a cut in this deal. And then had a fall out when sanjay started becoming too visible

  4. julia

    Thakran wants to win at all costs. He is buying companies left, right and center. He knows how to promise and strike a deal. What happens afterwards he does not care. He leaves a trail of legal cases, and financial mess behind. He moves too fast and works too smooth. He is not what he appears to be.

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