Reliance Brands is in talks to buy 30 per cent stake in apparel brand Ritu Kumar. The deal may be announced as early as next week.
However, both companies have not confirmed the same as yet.
Reliance Brands, the premium unit of Reliance Retail, is known for marketing high-end brands in India such as Burberry, Bally, Gas, Kate Diesel, Spade and few more.
As per a report of Economic Times, a leading business daily, Reliance will take a controlling stake in the brand while promoters will retain a minority stake.
Ritu Kumar owns RI, Label and Ritu Kumar home brands. As per the report, the 50-year-old company has been trying to raise funds for some time. Ritu Kumar is popular for its contemporary designs like suits, tunics, lehengas, ethnic jackets and bridal collections. It has around 84 stores.
The deal will give an exit to Singapore-based a private equity firm, Everstone from the designer brand which operates over 84 physical outlets across India. It had invested Rs. 100 crore in the New Delhi-based fashion label in 2014.
Reliance is scouting for brands to acquire to strengthen its offering in the segment in which it is directly pitted against Amazon and Walmart-owned Flipkart.
