Reliance Retail Ventures (RRVL) is buying Arvind Beauty Brands Retail, a subsidiary of Arvind Fashions that runs the Sephora India business, for ₹99 crore.
The transaction values Arvind Beauty Brands at ₹216 crore, a release by Arvind Fashions said.
A separate release by Reliance Retail said that it has tied up with omnichannel beauty retailer Sephora to jointly develop beauty retailing in India. “The partnership gives RRVL exclusive rights to build and enhance Sephora’s presence in India across channels,” it said.
The deal is being done through RRVL subsidiary Reliance Beauty and Personal Care.
Sephora operates 26 stores in 13 Indian cities selling skincare, makeup, fragrance and haircare products. It has partnered with Arvind over the last eight years, making its entry into India in 2012. Sephora is part of French luxury goods maker LVMH, which also owns Louis Vuitton.
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Reliance Retail said that it would expand the brand across the country.
Arvind Fashions said that with this sale it will emerge as a pure-play branded fashion company and will help to sharpen its focus on profitably growing its “five marque industry leading brands” that include US Polo Association, Tommy Hilfiger, Arrow, Flying Machine and Calvin Klein.
Saying that the company has scaled up Sephora India from four stores to 26 stores, Arvind Fashions CEO Shailesh Chaturvedi said, “This transaction will help AFL put capital behind growing our 5 high conviction brands and accelerate the journey towards higher free cash flow and return on capital employed.” The proceeds will also be used to repay debt.
Arvind Beauty Brands reported revenue of ₹336.7 crore in FY23, contributing just over 7 per cent of Arvind Fashions’ consolidated revenue.