Why has Reliance bought out the ensemble line of Ritu Kumar?
Answer
Answer
The latest deal comes less than a week after Reliance Retail Ventures bought a 40% stake in Manish Malhotra couture via a stake in MM Fashions. Now, Reliance has announced a 52% stake buy in the Ritu Kumar line. While Manish Malhotra largely caters to the very up market segment and Bollywood glamour events, Ritu Kumar is upper mid-market.
The value of the transaction has not been made public. As part of the buying, Reliance took over the entire 35% stake of Everstone PE fund. Ritu Kumar conducts its business under 4 broad fashion brand portfolios. Reliance Retail is planning to build a complete Omnichannel platform to cover both proprietary and marquee brands under a single roof.