Reliance Brands, a subsidiary of Reliance Industries Ltd. is eyeing to fully acquire Genesis Luxury Fashion Pvt Ltd. which is a unit of Genesis Colors involved in the marketing and distribution of International Luxury labels for an estimated amount of Rs 450 crore.
Genesis Luxury comes under India’s top luxury groups and this acquisition is sure to give a boost to the business of Reliance Brands. This step may also help Reliance to build a dominant space in the emerging luxury market of the country.
According to the reports, last year, Reliance Brands had purchased a 46.6% stake in Genesis Luxury from Singapore-based private equity firm L Catterton Asia. And now, the company is in the advanced stage to acquire it wholly.
Genesis Luxury Fashion, launched in the year 2008 is involved in the marketing and sales of a number of brands including Burberry, Canali, Paul Smith, Armani, Just Cavalli and Jimmy Choo. Genesis had also started a joint venture with Burberry of UK, a classic menswear Italian Luxury brand CANALI and the German tableware brand Villeroy & Boch.
“The luxury market in India is growing pretty well at 15% or more, and it is still under-penetrated,” said Harminder Sahni, founder of Wazir Advisors, a retail consultancy firm. “Reliance with its deep pockets is smartly cornering that space with its multi-layering strategy of getting in several luxury brands that will address consumers from the entry level of the market to its highest end. It is clearly a long term strategy of staying invested much before the markets open up further,” he added.
At present, the Reliance Retail has 424 stores in operation across the country which involves the marketing of over 40 international brands. Through this latest acquisition plan, the company now aims to expand its brand’s portfolio and also build an image in the luxury market of the country.