Reliance Industries’ subsidiary Reliance Brands has recently acquired an additional 8 per cent stake worth Rs 34 crore in Genesis Colors Limited (GCL), a luxury fashion firm. It previously acquired 40 per cent stake from L Catterton. This additional acquisition is in line with the company’s objective to fully acquire the Genesis Luxury group.
This acquisition has taken the brand’s total stake to 9.29 per cent, as according to the filing, the company bought 8.14 per cent equity stake in the luxury fashion retailer for around Rs. 34.17 crores. “GCL is in many ways similar to Reliance Brands Limited. This acquisition will enhance the current portfolio of branded fashion retail stores,” the filing said.
GCL was established in November 1998 and is in marketing and wholesale business of branded ready-made apparels, bags, footwear and accessories directly and indirectly with its subsidiary or collaborations.
Markedly, with the luxury goods market expected to be around US $ 19 billion in India, such a significant stake acquisition in Genesis is expected to provide Reliance complete dominance in the country’s luxury goods sector.
Genesis at present retails luxury labels such as Burberry, Paul Smith, Armani, Jimmy Choo and others in the country. The luxury fashion group had a tentative annual turnover of Rs 86.02 crore in the last fiscal year and a turnover of Rs. 80.04 and 114,16 crores in the previous fiscal years.
Additionally, Reliance Retail operates more than 400 stores across India and it houses a portfolio of over 40 global brands that sell luxury, bridge-to-luxury, and high-street lifestyle products.
