While Ganguly didn’t disclose the size of the acquisition, he noted that Gurugram-based Mochiko manufactures shoes for international brands such as Adidas, Puma, New Balance, Skechers, Reebok, Asics, Crocs, Decathlon, Clarks and US Polo.
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The acquisition comes at a time when the government of India has mandated BIS (Bureau of Indian Standards) certification of shoes from next July to curb sub-standard imports from markets such as China, Vietnam and others. Industry executives said this will push international shoe brands to move their manufacturing to India, to obtain the required approval.
In May, Ganguly’s venture raised $52 million in its first round of funding. Agilitas has funded the buyout through these proceeds and is looking to invest further in the unit to scale up the business.
“Mochiko is the first such manufacturer in India that is BIS approved. We will invest further in technology, capacity and enhance the quality of products. It will also enable brands to have a supply chain that is closer to the consumer. The Mochiko management team will continue to operate the business “
In FY23, Mochiko Shoes registered a revenue of Rs 642 crore, and this is expected to grow to about Rs 820 crore in the ongoing fiscal year, Ganguly added.
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Started in 2008 by Virender Awal and a five-member founding team, Mochiko has manufacturing units in Dehradun, Rishikesh (Uttarakhand) and Noida, and employs nearly 10,000 individuals.“This acquisition augments Agilitas’ value proposition by strengthening our supply chain in the rapidly growing sports footwear market. Mochiko’s manufacturing capabilities, operational excellence and strategic partnerships with leading global giants position us to address the government’s clarion call to ‘Make in India’, and to cater to the rising aspirations of an economic superpower with the largest youth population,” Ganguly added.
Awal said Mochiko is now poised to enhance long-term investments, addressing the soaring demand in the sports and athleisure footwear sector. “We envision multi-fold and multifaceted growth in our business over the next 5-6 years, adding jobs and livelihoods,” he added.
Ganguly’s colleagues from Puma India—Atul Bajaj and Amit Prabhu—are also cofounders of Agilitas. They left Puma India in August.
In May, Ganguly had told ET that 70% of the sportswear market is in footwear and that will be a big area of focus for Agilitas. Besides the investment in manufacturing companies, Agilitas is also looking at brand licensing deals in the sector, but those details are yet to be finalised.