Former World Bank chief buys stake in Fabindia

LONDON: WCP Mauritius Holding, an investment vehicle promoted by former World Bank President James Wolfensohn, has bought a minority stake in India's ethnic wear company Fabindia for about 11 million dollars, a Financial Times report said.

The deal gives WCP Mauritius Holding a six per cent stake in Fabindia, the daily said.

It quoted Fabindia as saying that the money would be used for expansion and growth plans, which include increasing the number of stores to 200 in four years.

In New Delhi, a Fabindia spokesperson said: "There has been an investment. But this is an old development. We would not like to say anything on the stake."

Fabindia has 61 stores selling men and women's garments as well as household furnishings, pottery, organic food and handicrafts.

Fabindia was set up in 1960 by John Bissell, a buyer for Macy's New York who then worked as a consultant for the Ford Foundation to develop India's export potential in its emerging textile industry.