Reliance Retail acquires beauty business of Arvind Fashions, to run Sephora
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.
