Reliance Retail will now operate Sephora in India as Arvind Fashions Limited (AFL) has signed definitive agreements with Reliance Beauty & Personal Care Limited (RBPCL) to sell its wholly owned subsidiary Arvind Beauty Brand Retail Limited (ABBRL) which runs Sephora India business, in an all cash transaction.
Transaction has been done at enterprise value of Rs 216 crore towards sale of entire equity stake and repayment of loans.
On a consolidated basis, the turnover of Arvind Beauty Brands Retail Limited in the previous financial year 22-23 was Rs 336.70 crore which accounted for 7.60% of the consolidated revenue of the company.
Net worth of Arvind Beauty Brands Retail Limited in the Financial Year 22-23 was Rs 10.6 crore which accounted for 1% of the consolidated net worth of the company.
AFL intends to utilise the proceeds to invest in growth of its brands portfolio and repayment of debt. Sephora operates 26 stores across the country offering prestige beauty products across categories such as makeup, skincare, fragrance, haircare.
“Rising affluence, increasing urbanisation and the proliferation of social media have driven greater awareness of self-care and beauty, unlocking major opportunities for prestige beauty. It is an opportune time for us to invest in expanding our presence, and bring new, exciting, and exclusive brands to delight our growing community of beauty enthusiasts,” said Alia Gogi, Asia President, Sephora.
The Indian beauty and personal care market pegged at USD 17 bn and set to grow at a 11% CAGR, is still believed to be in its infancy; positioning India as one of the largest untapped consumer markets globally.
“Indian beauty market is being propelled by a new generation of customers with a strong desire to express their individuality, rising aesthetic refinement and a growing number of women in the young workforce of India. This partnership will help us straddle across the value chain in beauty and personal care segment,” said V Subramaniam, Director, Reliance Retail Ventures Limited.
RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of over 18,650 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle and pharma consumption baskets and has partnered with over 3 million merchants through its new commerce initiative.
RRVL reported a consolidated turnover of Rs 260,364 crore ($ 31.7 billion) and net profit of Rs 9,181 crore ($ 1.1 billion) for the year ended March 31, 2023.
