Reliance Retail Ventures has acquired a 52 percent equity stake in Ritika Pvt Ltd that owns Ritu Kumar, Label Ritu Kumar, RI Ritu Kumar, aarké, and Ritu Kumar Home and Living. It made the announcement on October 19.
Reliance Retail Ventures bought out private equity firm Everstone Group’s 35 percent stake in the company. It was to complete the deal to acquire the majority share of the company.
The acquisition by the company comes close on the heels of Reliance Brand’s strategic tie-up with another designer label Manish Malhotra.
Reliance Brands last week signed a definitive agreement to invest in founder and creative director Manish Malhotra’s eponymous brand for a 40 percent minority stake.
Meanwhile, Isha Ambani who is the Director of Reliance Retail Ventures, said, “Very few countries can match the sophistication, style and originality of design, especially in printing and painting of textiles and weaves, found in India. We are delighted to partner with Ritu Kumar, who possesses strong brand recognition, the potential for scale, and innovation in fashion and retail – all key ingredients to building a complete lifestyle brand. Together, we want to build a robust platform and customer ecosystem for our native textiles and crafts – both in India and across the world – so that our crafts receive the honour and recognition they deserve in international couture.”
The Retail majors have been seen trying to build the ethnic retail category aggressively. Aditya Birla Fashion and Retail in January this year acquired a majority stake in designer label Sabyasachi. Later in February, it attained a 33 percent stake in another designer label Tarun Tahiliani.
According to market estimates, the market for ethnic for both men’s and women’s is valued at about Rs 1.5 lakh crore. Meanwhile, Experts say that about 88 percent of the ethnic wear market is unorganised in India. The organised market is valued at Rs 17,000-18,000 crore. In the organised segment, about 40 percent of the market belongs to brands in the value segment, 30 percent is commanded by premium brands and 30 per cent by luxury brands.
Label Ritu Kumar launched in 2002 is for a younger, global consumer of western pret. The third RI Ritu Kumar is a luxury bridal couture and occasion wear line. While aarké is the newest addition to the brand portfolio. It is an accessible product line blending the aesthetics of Ritu Kumar in easy dressing meant to reach a larger consumer base. Ritu Kumar Home & Living is a category extension under Ritu Kumar for home accessories and furnishings.