Billionaire Mukesh Ambani-led Reliance Industries Ltd has acquired Rhea Retail Pvt. Ltd, for Rs 203.46 crore or $30 million in cash, reports Vccircle.
The acquisition was made through unit Reliance Brands Ltd, the energy-to-telecom corporation said in a stock-exchange filing on Friday.
However, no regulatory approvals were required for the acquisition.
The acquisition will result in significant synergy since the target company, like Reliance Brands, operates in the retailing industry, the filing said.
Rhea, which sells products for children and expectant mothers, was incorporated in April 2007. Its revenue for the year through March 2018 was Rs 200 crore, the same as the previous year. For 2015-16, however, its revenue was Rs 175 crore.
Recently, an ET report stated that the Reliance Brands have contacted half a dozen Indian designers for a potential stake in their businesses. As per the report, Reliance Brands have reached out to Raghavendra Rathore, Rajesh Pratap Singh among other designers to explore the possibility of investing in their businesses.
Reliance Brands is the brand licensing arm of Reliance Industries’ retail unit, Reliance Retail Ltd, the country’s biggest brick-and-mortar retailer.
Reliance Brands has a portfolio of over 40 international brands that span across the luxury, bridge-to-luxury, high-premium and high-street lifestyle segments. It sells luxury labels such as Ermenegildo Zegna, Bally and Brooks Brothers in India.
In September last year, Reliance bought L Catterton Asia’s 40% stake in Genesis Luxury. It had also inked a deal in June last year with Italian brand Valentino to bring the brand to India.
Reliance Brands began operations in October 2007 with a mandate to launch and build international and domestic brand equity in the premium to luxury segment across apparel, footwear and lifestyle business. Its current portfolio of brand partnerships comprises of Brooks Brothers, Dc, Diesel, Dune, Ermenegildo Zegna, Gas, Hamleys, Hunkemoller, Iconix, Juicy Couture, Kate Spade, Kenneth Cole, Muji, Paul & Shark, Quiksilver, Reiss, Roxy, Steve Madden, Superdry, Scotch & Soda and Thomas Pink among others.
Reliance Brands posted a net loss of Rs 4.85 crore on revenue of almost Rs 318 crore for 2017-18, according to the annual report of Reliance Industries.
According to the annual report, Reliance Retail has become the first retailer in India to cross the $10 billion revenue milestone and enter the list of the world’s top 200 retail chains.