A subsidiary of Mukesh Ambani-led Reliance Industries Limited called ‘Reliance Brands Limited’ has bought 100% stake in Rhea Retail Private Limited and has successfully acquired it for Rs 203.46 crore ($30 million) in cash.
Rhea Retail is a Delhi-based privately owned firm which was founded in 2007 and its main line of business comprises of the distribution of women’s, expectant mother’s, children’s, and infants’ clothing and accessories. Its revenue for the year through March 2018 was Rs 200 crore, the same as the previous year.
On the other hand, Reliance Brands Limited is a part of Reliance Industries Group which too began its operations in 2007. It deals in over 40 international brands and aims to launch and build international and domestic brand equity in the premium to luxury segment across apparel, footwear and lifestyle business. Last year, the company acquired a 46.6% stake in Genesis Luxury Fashion Pvt. Ltd.
Along with fashion and lifestyle, Reliance also carries its business in grocery, consumer electronics and fuel retail. Also, it runs its e-commerce business called Ajio.com which is at present, one of the most popular online shopping websites in the country. The Reliance Retail comes under the list of world’s top 200 retail chains which marks as an achievement for the country. The undertaking has become the first retailer in India to cross the revenue milestone of $10 billion.
Reliance stated that no restrictive agreements were required for the acquisition of Rhea Retail. Both the companies have been involved in the retail sector since the beginning and therefore the acquisition is sure to get Reliance Brands to great heights through the combined efforts and ideas of both the undertakings. This time Reliance has focused mainly on the mothers and kids but nevertheless, all the fashion lovers and enthusiasts must get excited because Reliance Brands may bring in a lot more in the future.