Reliance Retail To Acquire Arvind Fashions' Beauty Retail Business
India is positioned as one of the most attractive and fastest-growing beauty markets, according to Redseer.
The country's leading retailer Reliance Retail Ltd. will acquire the beauty retail business of the Lalbhai family-promoted Arvind Fashion.
Arvind Fashion on Friday said it has entered into a share-purchase agreement with Reliance Beauty & Personal Care Ltd., a wholly owned subsidiary of Reliance Retail Ventures Ltd., to sell and transfer the entire equity stake held by the company.
Upon completion of the formalities, Arvind Beauty Brands Retail would cease to be a subsidiary of the company, according to a regulatory filing from the Ahmedabad-based company.
The company said: "The transaction has been done at an enterprise value of Rs 216 crore towards the sale of the entire equity stake and repayment of loans. The Purchase consideration towards the sale of the entire equity stake is Rs 99.02 crore."
Arvind Beauty Brands Retail had a turnover of Rs 336.70 crore in FY23 and contributed 7.60% of the consolidated revenue of Arvind Fashions.
Reliance Retail has entered into the fast-growing beauty business with Tira, an omnichannel beauty retail platform.
The country's leading retailer competes with brands like HUL's Lakme, Nykaa, Tata and LVMH's Sephora in India's growing beauty and personal care marketplace.
Reliance Retail Ventures is the holding company of all the retail companies under the Reliance Industries Ltd. group.
According to a joint report by Redseer Strategy Consultant and Peak XV (formerly Sequoia Capital India & Southeast Asia), the Indian beauty and personal care market is estimated to grow to $30 billion by 2027, accounting for 5% of the global market, according to a report.
The Indian beauty and personal care market--estimated to be around $19 billion in 2022--has very low per capita spend in the category but as the country prospers, the growth headroom will materialise strongly, the report said.
India is uniquely positioned as one of the most attractive and fastest-growing BPC markets globally, the report said.
Shares of Arvind Fashions Ltd. on Friday were trading at Rs 347.35 at BSE, up 6.71%.