India: Lighthouse Funds invests $8m in laminate maker Stylam Industries

Lighthouse Funds LLC, a mid-market private equity investor focused on the Indian consumer sector, has invested Rs51 crore in Stylam Industries Ltd, a listed laminate manufacturer.

Stylam, incorporated in 1991, designs, manufactures and markets laminates for residential, commercial and industrial purposes. The company clocked revenue of about Rs250 crore in financial year 2015-16; its revenue grew at a compound annual growth rate of over 22% over the past five years.

Stylam is in the process of commissioning a new manufacturing facility that would double its production capacity. The Chandigarh-based company has a manufacturing facility at Panchkula in Haryana.

“We intend to use the infused capital for the growth plans of the company wherein we are doubling our production capacity and launching new products,” said Jagdish Gupta, managing director of Stylam Industries.

Gupta said Lighthouse’s track record of investing in consumer and branded companies will help Stylam in its growth plans.

India’s favourable demographics such as increasing urban population, and the government’s thrust on housing will benefit the home improvement and building materials industry, said Sachin Bhartiya, a partner at Lighthouse.

“We have been closely tracking the building materials industry in India and are very excited to partner with Stylam,” he said.

Lighthouse is currently preparing to raise its third and largest private equity fund of $200 million, Mint reported in April.

Set up by Mukund Krishnaswami and Sean Novak, Lighthouse typically invests in the range of $5-20 million per transaction in consumer-facing firms. The fund inducted Sachin Bhartiya as a partner in 2007.

Lighthouse Funds currently has a corpus of about $235 million. It has raised two funds of $100 million and $135 million. The PE fund has invested in 17 companies since it raised its first fund in 2009.

(As published in livemint on Thu, May 18 2017)