Business

Reliance buys 52% in designer labels of Ritu Kumar in luxury bet

The retail unit of Indian conglomerate Reliance Industries has acquired a 52% stake in widespread designer labels of Ritu Kumar, the company mentioned on Tuesday, in the most recent bet on the nation’s fast-expanding luxury designer market.

Reliance Retail didn’t disclose monetary particulars of the transaction, however mentioned its majority stake acquisition included shopping for out the 35% stake held by Everstone Capital in India’s Ritika Pvt Ltd, the company that owns Ritu Kumar manufacturers.

“We are looking at the top 20 million customers in India. Not 1.3 billion. The discretionary wallet spend on products of the top 20 million customers is what we remain focused on,” Darshan Mehta, CEO of Reliance Brands, which manages such luxury partnerships for the group, advised Reuters in an interview.

“If there is opportunity to be acquisitive in nature and a whole host of things are right, we’re there.”

Kumar – finest recognized for her ethnic designs – runs her flagship namesake model, along with her record of clients together with prime Bollywood actors Aishwarya Rai and Priyanka Chopra.

Some of Kumar’s wedding ceremony outfits are priced as excessive as 800,000 rupees ($10,660), in accordance with her web site.

Just final week, Reliance purchased a 40% stake in a trend home run by one other widespread Indian designer, Manish Malhotra. And in January, Aditya Birla Fashion and Retail purchased a 51% stake in the Sabyasachi model, finest recognized for its high-end wedding ceremony put on.

After being battered by the Covid-19 pandemic, India’s retail and luxury market is making a comeback. With excessive pent-up demand, Darshan mentioned India’s ongoing festive season is “possibly going to be the finest” as consumption will surge in the subsequent 4 to 5 months.

Reliance Retail, the nation’s largest retailer run by billionaire Mukesh Ambani, additionally has partnerships with world manufacturers comparable to Burberry and Jimmy Choo by joint ventures and franchises.

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