Lighthouse Funds, a fund that focuses on mid-market consumers and healthcare, has invested Rs 229 crore in luggage maker Safari Industries through its recent fund, Lighthouse India Fund IV AIF.
This is the second investment by Lighthouse from its newly raised fourth private equity fund.
Sachin Bhartiya, co-founder and partner at Lighthouse Funds, mentioned, “The Indian luggage market is benefiting from more people traveling for leisure and weddings. In the last decade, we have seen improvements in rail and road connectivity and significant growth in the aviation sector.”
He highlighted the tourism potential in India, indicating positive trends for the sector. Bhartiya added, “Safari is well-positioned to take advantage of this opportunity, with increasing discretionary spending and changing consumer preferences favoring branded luggage.”
Sudhir Jatia, chairman, and managing director of Safari Industries, stated that the luggage maker will leverage Lighthouse’s experience to penetrate deeper into the Indian market.
Although the Indian luggage market is largely unorganized, it is riding on the wave of a booming travel and tourism industry. According to Crisil, a ratings agency, the domestic luggage market is estimated at Rs 15,000 crore, with organized players holding a 40% share. Crisil’s report also suggests that organized luggage makers plan to double their capacity and increase retail presence by 35-40%, with a total capital expenditure of Rs 700 crore this fiscal year.
On February 29, Safari Industries announced in a stock exchange filing that its Board of Directors approved the allotment of 12 lakh fully paid-up equity shares of face value Rs 2 each to Lighthouse India Fund IV AIF. Lighthouse Funds has previously invested in well-known companies like Bikaji Foods, Nykaa, Fabindia, and Ferns N Petals.
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