Reliance buys 52% of top Indian fashion label in luxury bet

A bird passes a Reliance Industries logo on its mart in Ahmedabad (India), January 16, 2017. REUTERS/Amit Dave//File Photo

MUMBAI (Reuters) – Reliance Industries’ retail unit (RELI.NS), said Tuesday that it had acquired a 52% stake at Ritu Kumar’s popular designer labels in a latest bet on India’s rapidly expanding luxury designer market.

Reliance Retail didn’t disclose financial details, but stated that it had acquired the majority stake in Everstone Capital, India’s Ritika Pvt Ltd., which owns Ritu-Kuruk brands.

“We are looking at the top 20 million customers in India. Not 1.3 billion. The discretionary wallet spend on products of the top 20 million customers is what we remain focused on,”Darshan Mehta (CEO of Reliance Brands), spoke to Reuters during an interview.

“If there is opportunity to be acquisitive in nature and a whole host of things are right, we’re there.”

Kumar, who is best known for her ethnic designs and runs her flagship brand, which has a list of customers that includes Aishwarya Rai and Priyanka Chaupra.

Some of Kumar’s wedding guests outfitsAccording to her website, they can be as high as 800,000. Rupees ($10.660).

Reliance just bought a 40% share in a company called a fashionManish Malhotra is another popular Indian designer who runs the house. Aditya Birla Fashion and Retail acquired a 51% share in Sabyasachi’s brand in January. This brand is best known for its high-end weddingwear.

India’s luxury and retail markets are making a comeback after being devastated by the COVID-19 epidemic. Darshan stated that India’s ongoing festive season is a result of high demand and pent-up demand. “possibly going to be the finest”As the consumption will increase in the next four- to five months.

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Reliance Retail is the country’s largest retailer and is run by billionaire Mukesh ambani. They also have partnerships with global brands like Burberry, Jimmy Choo, and Jimmy Choo through joint ventures or franchises.

(This story was rewritten to fix a typographical error in the headline.

Reporting by Abhirup Ray; Editing by Sanjeev Mglani and Bernadettebaum

Our Standards: The Thomson Reuters Trust Principles.

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