Genesis 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.
The 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.
Genesis 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.
As per highly reliable sources, Puneet Nanda who took over the reins of designing for Satya Paul collection after the octogenarian designer Satya Paul retired, wants to quit as the Creative Director of Staya Paul.
Satya Paul was acquired by Genesis Colors and Puneet Nanda was the chief designer of all Satya Paul collections. Satya Paul’s famous printed saris, neckties, scarves and designer Indian wear are not only selling well in metros and A Cities but also does well in B Cities of India, Satya Paul is truly a success story of an indigenous fashion brand.
My source also tells me that Sanjay Kapoor of Genesis Colors is not keen in letting Puneet Nanda go but Puneet on the other hand is rather determined. Genesis has to scout for a new designer to carry on the Satya Paul legacy and few names are doing the rounds. Will keep you posted on it.