RPSG Group Makes Strategic Entry into Luxury Fashion
The RP-Sanjiv Goenka Group has officially stepped into India's luxury apparel and lifestyle sector through its subsidiary RPSG Ventures Ltd. The company announced on Wednesday that it has approved the acquisition of a 40% stake in FSP Design Pvt. Ltd, the parent company of the renowned luxury fashion label Falguni Shane Peacock.
This significant transaction values FSP Design at an enterprise valuation of ₹455.17 crore, with provisions for post-closing price adjustments as detailed in the share subscription and purchase agreement. The deal represents a major strategic move for RPSG Ventures as it diversifies into the high-end fashion segment.
Transaction Structure and Future Options
According to regulatory filings with the BSE, RPSG Ventures' Board of Directors cleared the execution of both a share subscription and purchase agreement and a shareholders' agreement with FSP Design and its promoters. The acquisition involves purchasing both new shares and existing shares from current stakeholders.
The agreement includes a crucial provision that gives RPSG Ventures the right to acquire an additional 10% stake within 18-24 months following the initial transaction completion. This would potentially increase RPSG's total holding to 50% in the luxury fashion house.
Shashwat Goenka, Vice Chairman of RPSG Group, expressed enthusiasm about the partnership, stating: "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."
FSP Design's Impressive Growth Trajectory
Founded in 2019 in Mumbai, FSP Design has established itself as a prominent player in the luxury couture and accessories market. The company operates under the Falguni Shane Peacock brand, known for its elaborate designs and celebrity following.
The financial performance of FSP Design demonstrates strong growth momentum:
- FY23: Revenue from operations of ₹68.50 crore
- FY24: Revenue increased to ₹76.50 crore
- FY25: Revenue further grew to ₹91.75 crore
The brand maintains a widespread distribution network across India and international markets through exclusive stores, multi-brand outlets, and online platforms.
Broader Trend in Indian Fashion Industry
This acquisition aligns with an emerging pattern in the Indian fashion landscape where established business houses are investing in homegrown designer labels. The trend gained momentum post-pandemic when lockdowns significantly impacted the wedding market and related businesses.
Recent notable transactions in the sector include:
- Aditya Birla Fashion and Retail's 51% acquisition in Sabyasachi Mukherjee's fashion house (January 2021, approximately ₹398 crore)
- Aditya Birla's 33.5% stake purchase in Tarun Tahiliani's couture label (February 2021, ₹67 crore)
- Reliance Retail Ventures Ltd's majority stake acquisition in Ritu Kumar's Ritika Pvt. Ltd
- Aditya Birla Fashion's 51% stake in House of Masaba (2022)
Falguni Peacock, co-founder and creative director of FSP, emphasized that the partnership with RPSG Ventures would significantly advance the brand's global ambitions and expansion plans.
Strategic Implications and Market Context
The investment marks RPSG Ventures' strategic push into the luxury couture segment and represents a key step in building a differentiated portfolio across the luxury fashion and lifestyle space. RPSG Ventures currently operates a diversified portfolio spanning IT services, business process management, FMCG (including ayurvedic and wellness products), real estate, and sports.
For FY25, RPSG Ventures reported total income of ₹9,645 crore and profit after tax of ₹164.4 crore, demonstrating the financial capacity to support such strategic investments.
The Indian wedding industry presents a substantial market opportunity, having reached $75 billion during the 2023-24 wedding season according to a Mint report. Indian households traditionally allocate significant portions of their savings to wedding-related expenses, including luxury clothing, gold, and footwear.
The transaction remains subject to customary closing conditions, but once completed, is expected to accelerate FSP's long-term growth strategy, enabling expansion into key markets, diversification into new categories, and enhancement of organizational scale.
