Reliance Brands in talks to buy Genesis Luxury
Reliance Brands in talks to buy Genesis Luxury

New Delhi: Reliance Retail owned Reliance Brands is in advance talks to buy Genesis Luxury, a group company of private equity fund Sequoia Capital-backed Genesis Colors, for an estimated Rs 450 crore, as per a media report today.

Reliance Retail last year in September had bought private equity fund L Catterton Asia’s 40% stake in Genesis Luxury. So the company will now buy the remaining stake from the PE funds and owner Sanjay Kapoor.

According to industry experts the acquisition is in line of the company’s objective of achieving strong foothold in the booming luxury market.

Genesis Luxury sells diverse brands including Burberry, Canali, Paul Smith, Armani, Just Cavalli and Jimmy Choo. “The luxury market in India is growing pretty well at 15% or more, and it is still under-penetrated,” said Harminder Sahni, Founder, Wazir Advisors, a retail consultancy firm.

“Reliance with its deep pockets is smartly cornering that space with its multi-layering strategy of getting in several luxury brands that will address consumers from the entry level of the market to its highest end. It is clearly a long term strategy of staying invested much before the markets open up further,” said Singh.

Reliance Retail, which operates over 424 stores, has a portfolio of over 40 international brands that spans across the entire spectrum of luxury, bridge-to-luxury, high-premium and high-street lifestyle.

Reliance Brands’ portfolio includes Amsterdam-based fashion brand Scotch & Soda and Kate Spade New York apart from partnerships with 18 global mid-to-luxury brands including Diesel, Hamleys, Steve Madden, Timberland, Kenneth Cole, Ermenegildo Zegna, and Paul & Sharks.

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