Louis Vuitton is the French conglomerate that holds the stake in some of the world’s most desired luxury brands. Louis Vuitton Malletier is commonly referred to as Louis Vuitton.
“We would love to work with him if we can find a model,” said Ravi Thakran, managing partner, L Catterton Asia. However, “I know his model is not to work with multinationals and with foreign money.”
The deal may not go through as Ramdev has positioned his products and the company, through advertisements, as being anti-multinational. We all know that Patanjali is emerging as India’s fastest growing FMCG (fast moving consumer goods) and thus French luxury corporation wants a piece of desi business.
Getting into Ayurveda — perhaps an emerging international fashion trend alongside yoga and khadi certainly makes sense for the fund co-owned by LVMH that is looking to invest $500 million in India.
French luxury brand Moet Hennessy Louis Vuitton SE (LVMH) is very keen to work with Indian yoga guru Ramdev and buy a stake in his Patanjali Ayurved, The Economic Times reported.
The report of Economic Times also stated that L Catterton private equity fund co-owned by LVMH is willing to invest $500 million, which is nearly half of its remaining Asia fund.
BalKrishna said his company was “not averse to receiving funds from a multinational company like LV, but it should be in the form of a loan and not investment.” He said the company will not dilute its equity or shares.
“Patanjali prides itself in being a swadeshi brand. While we will not refuse if any foreign company wants to give us funds, we would like to make it clear that the money would be paid back and will be treated as a loan. We are not willing to sell stakes to any outside company,” said Balkrishna. “In our country, much talk is going on regarding allowing of foreign direct investment (FDI). The case with Patanjali is different,” he added.
Patanjali is planning to add new product segments as the brand is growing tremendously. Will they accept the offer of working with Louis Vuitton?