Wednesday, October 20, 2021

Reliance Retail acquires majority stake in Ritu Kumar’s company

 

Reliance Retail Ventures Ltd (RRVL) on Tuesday acquired a majority stake in fashion designer Ritu Kumar’s Ritika Pvt. Ltd, reinforcing an emerging trend of corporate houses buying into luxury ethnic wear companies.


The size of the deal was not disclosed, but RRVL acquired a little more than 52% of the company.


RRVL, a unit of Reliance Industries, bought a 35% stake held by Singapore-based private equity firm Everstone in Ritika on Tuesday.


Everstone had acquired the stake back in 2014 for $16.6 million. The Reliance group company also bought an additional 17% to take a majority stake.

Isha Ambani, director, RRVL, said very few countries can match the sophistication, style and originality of design, especially in the printing and painting of textiles and weaves found in India.


“We are delighted to partner with Ritu Kumar, and together, we want to build a robust platform and customer ecosystem for our native textiles and crafts —both in India and across the world."


Darshan Mehta, managing director and chief executive of Reliance Brands Ltd (RBL), clarified that Reliance Retail Ventures, which is also the holding company of RBL, will be acquiring Ritu Kumar and not RBL.


Reliance Retail reported revenue of ₹1.57 trillion for the financial year 2020-21. As of 31 March, it operated more than 12,000 stores.



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