Established in 1996, RedTape faces competition from global leaders like Nike, Adidas, Bata India, and Campus Activewear in a market projected to grow 11% annually to $21 billion by 2028, as estimated by market research firm 1Lattice.
The founding family, the Mirzas, have selected global consultancy Ernst & Young as the exclusive financial adviser for “divesting their stake,” according to a document from December outlining the intended transaction, observed by Reuters.
EY has contacted private equity firms Blackstone and KKR & Co to assess potential bids for the family’s stake, according to two of three sources.
They are currently seeking non-binding indicative offers, added one of the three sources, who requested anonymity due to the confidential nature of the process.
RedTape’s Managing Director Shuja Mirza and his father, the chairman Rashid Ahmed Mirza, did not respond to requests for comment from Reuters.
Both EY and KKR declined to comment, and Blackstone did not reply to queries from Reuters.
NOTED FOR LEATHER SHOES AND SNEAKERS
Family-operated Indian firms are attracting foreign investors due to their strong presence in domestic markets.
Last year, Singapore’s state investor Temasek acquired a 10% stake in the snacks division of India’s Haldiram’s, valuing the company at approximately $10 billion.
While two sources indicated that the Mirzas are considering the sale of at least a majority stake, they noted that they may entertain selling the entire 71.8% stake for a favorable deal.
The third source claimed the family was focused solely on selling the full stake.
At the closing price on Monday, a 50% stake in the company would be valued at $355.58 million, while the full 71.7% would be valued at $509.42 million.
The reasons behind the Mirzas seeking to sell their stake are not immediately clear. RedTape shares have been facing pressure since early 2025 and fell by 43% last year.
Renowned for its leather shoes, RedTape has also branched out into sneakers, shirts, wallets, and belts.
It markets products in over 600 Indian retail locations and has a presence in 14 countries, including Australia, Britain, and the United States, as well as in Europe and West Asia, as stated on its website.
In the fiscal year 2024/25, RedTape reported revenues of $223.91 million, a 9.7% increase from the previous year, although profit declined by 3.5% to $18.84 million.
