After acquiring the stakes in Manish Malhotra’s MM style, Reliance Retail took a step forward to buy the majority of the Stake, accounting for 52% of the company. RRVL, a unit of Reliance Industries, had bought a stake of 35% held by the private equity firm Everstone, which is a Singapore-based Group. Everstone had once acquired the stake back in 2014 for $16.6 million. Reliance Industries has an eye on the fashion business as they recently acquired a 40% stake in Manish Malhotra’s MM styles a few weeks back. Developing Ritu Kumar’s label with the highest percentage of the stake will help make the label a standardized brand that will allow plenty of focus and attention. The flagship label of Ritu Kumar generally deals with daily and formal ethnic wear.
Background
Ritu Kumar, who is now 76 years old had started her label in the year 1969. After making it to a good spot, the celebrated fashion designer had made her way into different categories. When she first started her fashion house, she dealt with every day and formal ethnic wear, but later she opened the doors of bridal wear with premium designs. With the advancement of the couture, Ritu Kumar has created four labels under her and covers around 151 stores for sale in India and abroad. About partnering with Reliance Industries, Ritu Kumar’s label would be outshining almost every apparel brand.
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Benefits of Buying Stakes at Ritu Kumar’s label
Reliance Retail Ventures will now explore the diversity in the apparel presented by Ritu Kumar’s collection. Isha Ambani mentioned that she wants to maintain a robust system of textiles and crafts both in India and across the world to benefit the label and the designer. As RRVL is also housing brands like Ajio, Fresh, 7Eleven, and Smart.
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Reliance Industries on Acquiring Stakes of Celebrated Fashion Designer Labels
It is more of a partnership more than of acquisition, said Mehta. They called it a strategic investment to make a strong mark in the apparel brands. Everything will be considered, from the supply chain to the customer’s investment in the brands. When Ritu Kumar was looking forward to raising money in the previous year, there were not many investors who would invest in the label. Investors were then looking for a more valuable brand. Still, as of now that Reliance has taken the majority stake, it will be a satisfaction for Ritu Kumar.
The Ultimate Reaction of Netizens after the Strategic Investment
After buying the stakes in famous celebrities fashion designer like Manish Malhotra’s MM style, netizens were quite sure that Reliance Industries had started to make its move to the fashion world. What they did not have any idea about was the sudden move of creating a strategic investment in the label Ritu Kumar. The netizens are going through a under the phase of ambiguity that every Indian brand will be rebranded globally and appreciated for their craftsmanship.
