Reliance Retail Arm Acquires Arvind Beauty Brands

Reliance Retail Ventures Ltd.’s unit acquired Arvind Fashions Ltd.’s wholly owned subsidiary Arvind Beauty Brands Retail Ltd. at an enterprise value of 216 crore rupees ($26 million).

The purchase consideration toward sale of entire equity stake is 99.02 crore rupees, Arvind Fashions said in a stock exchange announcement. The remainder amount is for repayment of loans, it added.

Arvind Fashions signed an agreement with Reliance Beauty & Personal Care Ltd. for the deal today.

On a consolidated basis, the turnover of Arvind Beauty Brands in FY23 stood at 336.70 crore rupees, which accounted for 7.6% of the consolidated revenue of Arvind Fashions, according to the statement.

In a separate statement, Reliance Retail Ventures said Reliance Beauty & Personal Care will take over the current India operations of Sephora's 26 stores across 13 cities from Arvind Fashions, as it sets in motion a plan to expand the French beauty retailer's presence in the country.

During the transition period, the stores and website will be operating business as usual, it added.

Reliance Retail Ventures also said its partnership with Sephora gives the company exclusive rights to build and enhance Sephora’s presence in India across channels.

The Indian beauty and personal care market, which is pegged at $17 billion, is set to grow at a 11% CAGR, positioning India as one of the largest untapped consumer markets globally, according to the statement.

(Note: $1 = 83.2542 Indian rupees)

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