Reliance, the country’s leading retailer, has announced its acquisition of the beauty retail business of Arvind Fashion, a company promoted by the Lalbhai family. This move by Reliance signifies its expansion into the fast-growing Beauty and Personal Care (BPC) market. Arvind Fashion confirmed the Share Purchase Agreement (SPA) with Reliance Beauty & Personal Care Ltd, a wholly-owned subsidiary of Reliance Retail Ventures Ltd, stating that the entire equity stake held by the company will be sold and transferred. Following the completion of the necessary formalities under the SPA, Arvind Beauty Brands Retail will no longer be a subsidiary of the company.
The transaction, valued at Rs 216 crore, includes the sale of the entire equity stake and the repayment of loans. The purchase consideration for the equity stake is Rs 99.02 crore. In FY23, Arvind Beauty Brands Retail reported a turnover of Rs 336.70 crore, contributing 7.60 percent of the consolidated revenue of Arvind Fashions.
Reliance Retail Ventures Limited (RRVL), the holding company of all retail companies under the Reliance Industries Limited (RIL) group, has entered the fast-growing beauty business with Tira, an omnichannel beauty retail platform. In the Indian beauty and personal care marketplace, Reliance Retail competes with brands like Lakme (HUL), Nykaa, Tata, and Sephora (LVMH).
According to a joint report by Redseer Strategy Consultant and Peak XV, the Indian beauty and personal care market is expected to reach USD 30 billion by 2027, accounting for 5 percent of the global market. The report highlights that although the per capita spend on beauty and personal care in India is currently low, the growth potential is promising as the country prospers. India is considered one of the most attractive and fastest-growing BPC markets globally.
Shares of Arvind Fashions Ltd were trading at Rs 347.35 at BSE, experiencing a 6.71 percent increase.
This news demonstrates Reliance’s strategic move to strengthen its position in the beauty and personal care sector, further intensifying competition in the market. With its expansion plans and entry into the fast-growing BPC market, Reliance aims to grab a significant market share and dominate the industry.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years.