Reliance, the country’s leading retailer, has announced its acquisition of the beauty retail business of Arvind Fashion, expanding its presence in the fast-growing Beauty and Personal Care (BPC) market. Arvind Fashion stated on Friday that it has entered into a Share Purchase Agreement (SPA) with Reliance Beauty & Personal Care Ltd, a subsidiary of Reliance Retail Ventures Ltd, to sell and transfer its entire equity stake. Once the formalities are completed, Arvind Beauty Brands Retail will no longer be a subsidiary of the company.
The sales transaction was valued at Rs 216 crore, which includes the sale of the equity stake and repayment of loans. The purchase consideration for the entire equity stake amounts to Rs 99.02 crore. In the fiscal year 2023, Arvind Beauty Brands Retail had a turnover of Rs 336.70 crore and contributed 7.60% of Arvind Fashions’ consolidated revenue.
Reliance Retail has entered the booming beauty business with Tira, their omnichannel beauty retail platform. In India’s growing beauty and personal care marketplace, Reliance Retail competes with brands such as HUL’s Lakme, Nykaa, Tata, and LVMH’s Sephora.
Reliance Retail Ventures Limited (RRVL) serves as the holding company for all the retail companies under the Reliance Industries Limited (RIL) group.
According to a joint report Redseer Strategy Consultant and Peak XV, the Indian beauty and personal care market is projected to reach USD 30 billion 2027, accounting for 5% of the global market. The report also highlights that the Indian BPC market, estimated to be USD 19 billion in 2022, has significant growth potential 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 on the Bombay Stock Exchange (BSE), experiencing a 6.71% increase.