Reliance Retail Ventures Limited, a subsidiary of the Reliance Industries Limited, has purchased 16.31 percent equity holding in Genesis Colors Limited (GCL) for a consideration of Rs 34.80 crore. The stake purchase is in addition to 49.46 percent equity holding in GCL held by the Reliance Brands Limited.
The acquisitions will help the company to strengthen its footage in the retail industry and support its long-term strategy to enhance its value in the retail industry.
However, no regulatory approvals were required for the said acquisition of shares as these investments do not fall within related party transaction. None of the RIL’s promoter/group companies have interest in these entities, RIL said in its statement.
GCL’s annual turnover in FY 2017-18 is Rs 86.02 crore. The company reported a turnover of Rs 80.04 crore and Rs 114.16 crore in FY 2016-17 and FY 2015-16, respectively.
GCL was incorporated in November 1998 and is in the business of retailing and wholesale of branded readymade garments, bags, footwear, and accessories directly and through its subsidiary/joint ventures. This acquisition adds to the existing portfolio of branded fashion retail outlets.
Since its inception in 2006, Reliance Retail has grown to become India’s largest retailer delivering superior value to its customers, suppliers, and shareholders.