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 marks Reliance’s 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 subsidiary of Reliance Retail Ventures Ltd, stating that the entire equity stake held by the company will be sold and transferred to Reliance.
Once the formalities under the SPA are completed, Arvind Beauty Brands Retail will no longer be a subsidiary of the company. The enterprise value of the transaction, which includes the sale of the equity stake and repayment of loans, is Rs 216 crore. The purchase consideration for the sale of the equity stake alone amounts to Rs 99.02 crore.
In FY23, Arvind Beauty Brands Retail had a turnover of Rs 336.70 crore, contributing 7.60% to Arvind Fashions’ consolidated revenue. Reliance Retail’s entry into the beauty business includes Tira, an omnichannel beauty retail platform. In India’s growing beauty and personal care marketplace, Reliance Retail competes with brands like 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 by Redseer Strategy Consultant and Peak XV, the Indian beauty and personal care market is projected to reach USD 30 billion by 2027, accounting for 5% of the global market.
Although the Indian Beauty and Personal Care (BPC) market was valued at around USD 19 billion in 2022, per capita spend in the category remains relatively low. However, as the country prospers, the growth headroom in this market is expected to materialize strongly. 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, reflecting a 6.71% increase.
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