Arvind Fashions said on Friday that it would sell its beauty brands segment, which sells LVMH-owned Sephora items, to billionaire Mukesh Ambani’s retail company Reliance Retail for 990.2 million rupees ($11.89 million).
As India takes center stage as a rising market for the new-age customer, Reliance Retail has managed to connect these customers’ goals with 85 worldwide companies, many of which have their biggest markets in India.
Reliance Retail’s 16 years of rich experience in deciphering the psyche of the Indian consumer have positioned it as the partner of choice for international brands wishing to explore the Indian luxury landscape, catering to a spectrum of luxury, bridge-to-luxury, high-premium, and high-street lifestyle segments.
Reliance Retail, a subsidiary of Reliance Industries, is India’s biggest retailer, with a diverse range of retail shops selling everything from meals, groceries, garments, footwear, toys, and home improvement items to electronic goods and agricultural equipment.
The agreement, which will add foreign brands to Reliance’s portfolio, comes months after local media claimed that Sephora and Reliance Retail had abandoned discussions to develop a retail collaboration for the Indian market.
Tira, Reliance’s own beauty retail platform, was established in April to compete with Nykaa and the Tata Group.
Arvind Fashions stated in a regulatory filing that the transaction had an enterprise value of 2.16 billion rupees.
Arvind Fashions shares jumped 11.5% following the announcement, before settling at a 7.3% gain.
In fiscal 2023, the beauty segment that housed Sephora recorded sales of 3.37 billion rupees or around 7.6% of Arvind Fashion’s overall revenue.
Reliance Retail, a subsidiary of Reliance Industries, is India’s biggest retailer, with a diverse range of retail shops selling everything from meals, groceries, garments, footwear, toys, and home improvement items to electronic goods and agricultural equipment.
AJIO, Reliance Retail’s foray into fashion e-commerce, has quickly risen through the ranks, appealing to the modern, fashion-conscious Indian. AJIO curates a wide range of clothes, footwear, and accessories that combine worldwide trends with a particular local flair.
Marks & Spencer, a well-known British retailer, entered India via a partnership with Reliance Retail. The collaboration, known as Marks & Spencer Reliance India, has successfully created 47 shops in different Indian cities, selling high-quality fashion, food, and homeware goods.
With a diversified portfolio of brands, Reliance Retail’s strategic vision and dedication to quality continue to connect with millions of Indian customers.
