The beauty arm of Reliance Retail, owned by Indian billionaire Mukesh Ambani's conglomerate Reliance Industries, will acquire the rights for Sephora India from Arvind Fashions for 990.2 million rupees ($11.89 million).
WHO: Sephora, the global beauty chain owned by LVMH, entered the Indian market in 2012, partnering with luxury retail group Genesis Luxury. They quickly changed partners in December 2013 to real estate conglomerate DLF, which managed the business through its retail arm DLF Brands. In 2015, the Sephora business switched hands again with Arvind Fashions running the business in India for the last eight years.
Arvind Fashions Ltd. is the leading lifestyle company owned by Arvind Ltd., India’s oldest and largest integrated textile player. in 1990, the company began launching international fashion brands in the country.
Established in 2006, Reliance Retail has grown to become India’s largest retailer and has pioneered India's retail revolution, with 3 million daily transactions, 249 million registered customers buying across all its formats, and more than 780 million footfall across all its stores in FY23.
WHY: Three partners and a decade since its India debut, Sephora has yet to be able to carve out a niche position in the market. The sale of the Sephora India business is part of Arvind Fashions' broader strategy to focus on its core apparel business. The company has been struggling in recent years and is looking to divest of non-core assets. Alliance Retail has deep pockets and reach in the market and Sephora will add to the retailer’s existing beauty portfolio under its Tira retail brand.
IN THEIR OWN WORDS: “We are tremendously excited to partner with the largest retail group in India to step-change our business. Rising affluence, increasing urbanization, and the proliferation of social media have driven greater awareness of self-care and beauty, unlocking major opportunities for prestige beauty. It is an opportune time for us to invest in expanding our presence, and bring new, exciting, and exclusive brands to delight our growing community of beauty enthusiasts,” said Alia Gogi, Asia President, Sephora.
"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, rising aesthetic refinement, and a growing number of women in the young workforce of India. The Indian consumerism journey is at a tipping point, providing the perfect tailwind to this partnership. Importantly this partnership will help us straddle across the value chain in the beauty and personal care segment,” said V. Subramaniam, Director of Reliance Retail Ventures Limited.
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