Starting a business in a foreign land can be an exhilarating yet daunting journey, especially when you’re navigating unfamiliar cultural landscapes. Entrepreneurs who take this leap often face unique challenges. Despite being unfamiliar with cultural landscapes, some not only go on to build thriving enterprises but also create lasting legacies that bridge borders and inspire future generations.
In 1958, John Bissell, an American from Hartford, relocated to India for a two-year Ford Foundation grant, where he served as an advisor to the Central Cottage Industries Corporation, focusing on exports. Inspired by India’s vibrant culture and heritage, Bissell chose to stay in the country. Using Rs 95,000 from his grandmother's inheritance, he founded Fabindia in 1960, starting operations from two small rooms in his home.
Interestingly, Bissell started by traveling through Indian villages in search of skilled weavers and eventually connected with AS Khera, a home furnishings manufacturer in Panipat, who became Fabindia's first supplier.
By 1965, the company had generated Rs 20 lakh in revenue. However, it encountered a significant challenge during the Emergency in 1975 when home-based commercial activities were prohibited, forcing a necessary shift in strategy.
Subsequently, Fabindia started its first retail store at Greater Kailash in Delhi in 1976. By 1994, Fabindia had opened a second store in Delhi and achieved annual sales of Rs 12 crore. As a philanthropist, Bissell established The Fabindia School in 1992 to support the welfare and education of children in India.
Fabindia experienced significant growth following substantial investments, including Rs 110 crore from Premji Invest, which valued the company at Rs 1,500 crore. The brand expanded its reach by opening stores in Singapore, Bhutan, Dubai, Italy, Nepal, Malaysia, and Mauritius. By 2016, Fabindia's valuation had exceeded Rs 5,397 crore.
At present, the company earns Rs 1,668 crore in revenue, employs 55,000 artisans, and operates over 400 stores. Fabindia became such a soaring success that it gained the attention of Tata, who is now keen on acquiring Fabindia.
The Tata Group is in talks with Fabindia's promoters and shareholders about acquiring a stake in the company. This acquisition may be valued at less than the estimated USD 2.5 billion (approximately Rs 20957 crore approx.) that was projected during Fabindia's now-canceled initial public offering.
Fabindia is India's largest private retail platform for handloom textiles.
The DNA app is now available for download on the Google Play Store. Please download the app and share your feedback with us.
