RedTape, a prominent Indian footwear and apparel brand, is exploring a private equity exit, with Blackstone and KKR among the firms approached to assess interest. Founded in 1996, RedTape operates over 600 stores in India and has a presence in 14 international markets. The company generated revenue of approximately $224 million in the latest financial year, although profits have declined due to rising costs.

The founders have appointed Ernst & Young to advise on the potential sale, which could fetch a valuation of up to $510 million. While the family is open to both majority and minority stake sales, they are currently seeking non-binding offers. This move comes at a time when private equity interest in Indian consumer brands remains robust, driven by the country's rising incomes, urbanization, and domestic consumption growth.

Despite challenges such as declining profits and pressure on discretionary spending, India continues to be a hotspot for consumer-focused investments. RedTape's exploration of a PE exit reflects the ongoing appetite for national-scale brands in the region, positioning it as a potential cornerstone for a major PE firm's Indian consumer strategy.