Reliance Retail buys Indian fashion brand, Everstone exits

The acquisition was made by Reliance Retail Ventures (RRVL), the holding entity for all retail assets under Reliance Industries. It operates India’s largest brick-and-mortar retail network with 12,000 points of sale nationwide, including neighborhood stores, supermarkets, wholesale outlets, specialty retailers, and online stores.

Last year, Reliance Retail raised INR472.7 billion ($6.4 billion) from eight global investors. It followed an earlier INR1.5 trillion fundraise by Jio Platforms, a Reliance Industries-owned holding company for a range of apps, some nascent broadband and cable services, and India’s leading mobile carrier.

The two units are pursuing complementary “new commerce” strategies. Jio Platforms addresses the demand side, with an online-to-offline network addressing e-commerce needs. Reliance Retail wants to drive supply-side digitization, helping small merchants apply technology to retail processes and supply chains.

Established in 1969, Ritu Kumar is described as a key player in contemporary Indian women’s dresses, known for its embroidery, artisanal crafts, and prints. Three brands have been launched in the last 20 years: a modern version of the Ritu Kumar label aimed at younger, global consumers; a luxury bridal couture and occasion wear line; and daily use, easy dressing offering.

There is also a home interiors brand comprising modern furniture pieces inspired by Indian textile and craftsmanship.

The company sells through a network of 151 outlets globally. Everstone invested INR1 billion in Ritu Kumar in 2014 to support scaling efforts. This is expected to be accelerated under Reliance Retail’s ownership, leveraging the company’s store footprint and retail expertise.

“Very few countries can match the sophistication, style and originality of design, especially in printing and painting of textiles and weaves, found in India. We are delighted to partner with Ritu Kumar, who possesses strong brand recognition, potential for scale, and innovation in fashion and retail – all key ingredients to build a complete lifestyle brand,” said Isha Ambani, a director at RRVL, in a statement.

“Together, we want to build a robust platform and customer ecosystem for our native textiles and crafts – both in India and across the world – so that our crafts receive the honor and recognition they deserve in international couture.”

This is not the first time an RRVL acquisition has facilitated a private equity exit. Last year, RRVL paid INR6.2 billion for drug marketplace Netmeds, which had previously received funding from the likes of Sistema Asia Fund, Daunh Penh Cambodia Group, and Cambodia's Tanncam Investment.

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• Topics
• South Asia
• Trade sale
• Consumer
• India
• Everstone Capital
• Reliance Industries