Reliance Retail Ventures has entered into an agreement to acquire the India business of French beauty retailer Sephora from rival Arvind Fashions, in a deal worth USD 11.89 million.
As part of the deal, Reliance Beauty & Personal Care, a division of Reliance Retail Ventures, will take over the current India operations of Sephora’s 26 stores across 13 cities, ahead of its plan to expand Sephora’s presence in the country.
“We are tremendously excited to partner with the largest retail group in India to step-change our business. 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.
“We are equally grateful to Arvind for their partnership over the past eight years to get us positioned for the next stage of growth.”
Sephorahas leveraged its international brand and local product offering, as well as experiential retail, to cater to the beauty needs of Indian consumers.
In fiscal 2023, the Arvind Fashion beauty division that held Sephora reported a revenue of RUP 3.37 billion, or about 7.6 percent of Arvind Fashions’ total revenue.
“We are excited and proud to partner with Sephora, a global leader in beauty. The burgeoning 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,” said V Subramaniam, director, Reliance Retail Ventures Limited. “The Indian consumerism journey is at a tipping point, providing the perfect tail wind to this partnership. Importantly this partnership will help us straddle across the value chain in beauty and personal care segment.”
The Indian beauty and personal care market is valued at USD 17 billion, according to Reliance, and is set to grow at a 11 percent CAGR, positioning India as one of the largest untapped consumer markets globally.