John Bissell, an American entrepreneur, founded Fabindia in 1960 with the vision of showcasing the beauty of Indian crafts to the world. The brand quickly gained recognition for its high-quality Indian fabric and its blend of modern and traditional styles. Fabindia's unique business model, known as inclusive capitalism, allowed artisans to buy shares in regional companies and return products if they did not meet quality standards. Over the years, Fabindia has grown significantly, employing 55,000 artisans and operating more than 400 stores across India. In 2023, the company generated revenue of Rs 1,668 crores.
Recently, there have been reports that the Tata Group, one of India's largest conglomerates, is in talks to acquire Fabindia. If the deal goes through, it could be one of the biggest acquisitions in the Indian textile industry. The potential acquisition is valued at a whopping Rs 17,000 crores. The Tata Group's interest in Fabindia highlights the brand's strong market presence and its potential for further growth.
In other news, market expert Ramesh Damani named George Mathew Fernandes as the father of the Indian stock market, acknowledging his significant contributions to shaping the country's financial landscape. George Mathew Fernandes, a prominent trade unionist and socialist, played a crucial role in shaping India's industrial policy. As the Industry Minister in the post-Emergency Morarji Desai government in 1977, Fernandes famously expelled multinational giants Coca-Cola and IBM from India. This bold move stemmed from their refusal to comply with the Foreign Exchange Regulation Act (FERA), which required foreign companies to reduce their equity stake in Indian associates to 60%. Fernandes insisted that Coca-Cola transfer not only 60% of its Indian firm's shares but also the secret formula for its concentrate to Indian shareholders. Coca-Cola agreed to the share transfer but refused to divulge the formula, citing it as a trade secret. As a result, the government denied Coca-Cola a license to import its concentrate, prompting the company's exit from the Indian market. Fernandes then introduced an indigenous substitute drink called '77'. Coca-Cola eventually returned to India in October 1993, following the liberalisation of the Indian market by the P. V. Narasimha Rao government. [82182b17] [ab9f1d21]
