“PINC’s strategic advisory enabled us to achieve our partnership aspirations, accelerate our growth plans and realise our vision. In a nascent industry with a hyper-growth opportunity, PINC was able to present our business model to prospective partners in a value driven manner.”
Joint Managing Director, Jyothy Laboratories Limited
Jyothy Fabricare Services Limited (JFSL), a subsidiary of Jyothy Laboratories Limited (JLL), is India’s largest chain of organised fabric care services. JLL is India’s leading FMCG player with products spanning fabric, home and personal care. Having launched its services in 2009, JFSL is a market leader with institutional customers like Indian Railways, airlines, hotels and corporates. It is also one of the largest service providers in the retail consumer segment with over 100 outlets across the country.
In order to harness its growth potential and further expand its operations across the country, JSFL sought funding through private equity investments. It desired to raise private equity at a price that befitted its aggressive growth plans while recognising the scarcity premium for high-end consumer and institutional services.
PINC’s extensive experience in transaction structuring was judiciously applied in this deal. After a thorough understanding of the business model and its dynamics, PINC formulated a strategy to induct a large institutional private equity investor who could share the company’s foresight and uncompromising vision. A detailed business plan was drawn on the basis of JFSL’s existing opportunities and future prospects. Consequently, the company attracted private equity investments that matched its valuation expectations and business foresight of becoming a multi-centre player with a much larger footprint.
Following the PE investments, JFSL’s operations have expanded rapidly. It has launched operations in four new cities and also entered the Railway BOOT segment. Further, the company has increased its revenues by five times, resulting in an increased margin of its market leadership.