Reliance Retail Ventures (RRVL) announced on Tuesday about it acquiring a 52 per cent equity stake in Ritika Pvt Ltd, which owns Ritu Kumar, Label Ritu Kumar, RI Ritu Kumar, aarké, and Ritu Kumar Home and Living, for an undisclosed amount. Recently Reliance had also bought a significant stake in Manish Malhotra’s couture label.
A 35% stake held by Singapore-based private global equity firm Everstone in Ritika on Tuesday was bought by RRVL to complete the deal and acquire the majority share of the company.
“RRVL’s majority equity acquisition in Ritika Pvt Ltd included completely acquiring Everstone’s 35 per cent stake in the company,” a joint statement said.
Everstone had acquired the stake back in 2014 for $16.6 million. The Reliance group company bought an additional 17% to take a majority stake.
“The partnership aims to highlight India’s re-emerging role in the international couture industry, through parallel tracks of sustenance and innovation. The goal is to re-interpret age-old designs, motifs and patterns that nest under the vast repository of crafts for modern accessories, stylish, textile-rich clothes and distinct couture from India,” the joint statement mentioned.
“Continuing with RRVL’s refocused attention towards value creation through developing and supporting home-grown talent rooted in Indian design sensibilities, this partnership with the matriarch of Indian fashion Ritu Kumar will set a benchmark in this journey,” it added.
Isha Ambani, Director, Reliance Retail Ventures, said, “Very few countries can match the sophistication, style and originality of design, especially in printing and painting of textiles and weaves, found in India. We are delighted to partner with Ritu Kumar, who possesses strong brand recognition, potential for scale, and innovation in fashion and retail – all key ingredients to build a complete lifestyle brand. Together, we want to build a robust platform and customer ecosystem for our native textiles and crafts – both in India and across the world – so that our crafts receive the honour and recognition they deserve in international couture.”
Fashion brands and labels recently have become common sights in the shopping carts of conglomerate companies. Reliance Brands Ltd had swooped in a 40 percent stake of fashion designer Manish Malhotra’s MM Styles Pvt Ltd last week.
In January, Aditya Birla Fashion and Retail, for about ₹398 crores, had acquired a 51% stake in Sabyasachi Mukherjee’s fashion house, followed by a 33.5% stake in Tarun Tahiliani’s couture label in February for ₹67 crores.
One of India’s oldest designers, Ritu Kumar established the company in 1969 and has since then stepped into several other segments of fashion. Label Ritu Kumar sells daily and semi-formal ethnic wear, besides which Ri. Ritu Kumar was launched in 2018 which provides premium bridal and formal wear. In 2002, ‘Label by Ritu Kumar’, a designer brand for ‘young urban India’, was launched. An everyday clothing brand Aarké was launched in March this year. With its four fashion labels, the company has about 151 points of sales in India and abroad.
“This very optimistic collaboration will further the work I started in researching and reviving India’s textile history and wealth while highlighting our design ability. It’s a story that needs to be told again. Once upon a time, India had 57% of the world’s GDP dependent only on its textiles” said Ritu Kumar, on the development.
Darshan Mehta, managing director and chief executive of Reliance Brands Ltd (RBL), clarified that Reliance Retail Ventures, which is also the holding company of RBL, will be acquiring Ritu Kumar and not RBL.
“When Reliance Brands has to acquire more than 50% of any business, it has to happen through RRVL since a fourth-generation subsidiary cannot be created. This is why the Manish Malhotra investment of 40% happened under the RBL brand.”
“I call this a partnership and not an acquisition. Fashion requires patient money. In fact, anything that is of substance would require that. And that’s what we bring to the table. This is also a strategic investment because this is a business that we truly understand every facet of right from real estate to training people, the supply chain, the craft and marketing,” he said.