Global PE major Advent merges its Indian innerwear companies

Advent International, a global private equity firm, has announced the completion of the merger of its portfolio companies Dixcy Textiles and Gokaldas Intimatewear, the parent company of the brand Enamor. 

The newly merged entity will be called Modenik Lifestyle and will be headquartered in Bengaluru, stated a release. Modenik will have a portfolio of five sub-brands - Dixcy Scott Originals, Dixcy Scott Maximus, Josh by Dixcy Scott, Slimz and Enamor. 

The release further added that the merger of Dixcy with its strong distribution network, and Enamor with its strengths in style and product design is expected to accrue value for all stakeholders including consumers, employees, shareholders and partners. 

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Sunil Sethi, who was the executive Chairman of both the companies, will continue in his position. Further, Shekhar Tiwari, previously the CEO of Enamor, will take on the role of Chief Category & Operations Officer of the merged company. 

"This is much more than creating a larger business. It's about realizing our vision of 'Being the most preferred company for comfortable & fashionable essential clothing," said Sethi. 

"The merger creates a broad and complementary product portfolio of comfortable and fashionable essential clothing for all ages, income classes and genders at the right value and opens up expansion into attractive growth adjacencies," he added. 

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The merged entity will bring together the professionals of both Dixcy and Enamor and will have a combined strength of 5,000, which would include 1,600 employees and 3,400 labour staff across its manufacturing operations in Tirupur, Kolkata, Bengaluru and Ludhiana. 

The brands would be able to leverage the others' distribution strengths where synergies exist, appoint more complimentary distributors or ask existing ones to expand, and unlock greater value from existing and new sources of supply, stated the release.