Reliance Beauty & Personal Care, a wholly owned subsidiary of Reliance Retail Ventures Limited (RRVL), has entered a partnership with Arvind Fashions.
The partnership will see Reliance Beauty & Personal Care acquire Arvind Beauty Brand Retail Limited, which operates the Sephora India business, in an all-cash transaction.
It will provide RRVL with exclusive rights to expand Sephora’s presence in India across channels.
Sephora entered India in 2012 and operates 26 stores across 13 cities in the country.
Its stores and website will continue to operate as usual during the process.
Sephora, an omni-channel prestige beauty retailer, offers make-up, haircare, fragrance, skincare and other beauty products.
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By GlobalDataReliance Beauty & Personal Care expects the partnership to transform prestige beauty retail in India, and boost its offerings.
Financial terms of the transaction have not been disclosed, but local media reported the deal to be worth Rs990.20m ($11.90m).
RRVL director V Subramaniam stated: “We are excited and proud to partner with Sephora, a global leader in beauty. The burgeoning Indian beauty market is being propelled by a new generation of customers with a strong desire to express their individuality, a rising aesthetic refinement and a growing number of women in the young workforce of India.”
The deal will make Arvind Fashions a pure-play branded fashion company, and will focus on expanding its five brands: US Polo Assn, Tommy Hilfiger, Arrow, Flying Machine and Calvin Klein.
Arvind Fashions will use proceeds from the sale to expand its brand portfolio and repay debt.
Arvind Fashions chief executive officer Shailesh Chaturvedi stated: “This transaction will help AFL put capital behind growing our five high conviction brands and accelerate the journey towards higher free cash flow and return on capital employed.”
The deal comes closely after the Abu Dhabi Investment Authority announced plans to invest Dh2.2bn ($597.58m) in Reliance Retail.
