The Hindu Business Line : Reliance Brands to offer private equity to cos in lifestyle space

Mumbai, Dec. 20 Reliance Brands, a subsidiary of Reliance Retail, is looking at becoming a private-equity partner to struggling companies and brands in the apparel, footwear and lifestyle segments. With plans of growing inorganically, the company is in the process of identifying companies with designer-led brands and Indian labels in need of funds and managerial expertise.

“We are looking at growing inorganically by investing in companies and brands which have run out of money and management competencies and will be acting as private-equity partners to them,” said Mr Darshan Mehta, CEO & MD, Reliance Brands Pvt Ltd. “We are beginning to have conversations with a couple of designer-led brands and Indian labels. There are a handful of designers who have the potential to make it big and we would be investing in such companies and brands with the purpose of increasing their footprint in the market,” he added.

Own brand

Simultaneously, Reliance Brands is also planning to create its own brands at the premium end of the apparel, footwear and lifestyle segments. “Through some internal research we are identifying those sweet spots in the market where we can cash-in with our own brands. We would create value with our own brands in the premium segment.”

The company does not plan manufacturing any of its own or acquired brands and would be using its expertise in sourcing and designing to make a foray into the retailing business.

Having recently forged a 51: 49 joint venture with the Italy-based Sixty Group, Reliance Brands intends launching its portfolio of brands such as Miss Sixty, Energies, Killah and Sixty in the Indian market by setting up a network of 20-50 stores in the next five years. The joint venture company intends setting up single branded stores under each of these brands before trying its hand at multi-brand retailing.

Besides, Reliance Brands intends exploiting the synergies across all its business models (acquired brands, own brands and joint venture brands) while buying real estate, negotiating with mall developers or leveraging IT processes across all its businesses.

However, Reliance Brands has yet to leverage the synergies across its parent company’s (Reliance Retail) retail formats. “If Reliance Retail comes up with a premium retailing format we might look at leveraging our brands,” said Mr Mehta.

Set up in October this year, Reliance Brands Pvt Ltd, is a 100 per cent subsidiary of the Mukesh Ambani-led Reliance Retail Ltd.

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