Reliance Retail Ventures on Tuesday announced that it has acquired 52 per cent equity stake in Ritika Pvt Ltd, which is owned by Ritu Kumar, labels Ritu Kumar, RI Ritu Kumar, RK and Ritu Kumar Home & Living. Reliance Retail Ventures bought private equity firm Everstone Group’s 35 per cent stake in the company to complete the deal to acquire a majority stake in the company.
The acquisition by the company comes close to a strategic tie-up of Reliance Brands with another designer label Manish Malhotra. Reliance Brands last week signed a definitive agreement to invest for a 40 per cent minority stake in the brand named after founder and creative director Manish Malhotra.
Isha Ambani, Director, Reliance Retail Ventures, said, “Very few countries can match the sophistication, style and originality of design in printing and painting of textiles and weavings found in India. We are delighted to partner with Ritu Kumar, Those who have strong brand recognition, ability to scale and innovation in fashion and retail – all key elements to build a complete lifestyle brand. Together, we are a strong platform and customer base for our original textiles and crafts in India and across the globe. We want to build the ecosystem so that our crafts get the respect and recognition they deserve in international textiles.”
Lately, large retail companies have been seen aggressively trying to carve out the ethnic retail category. Aditya Birla Fashion and Retail acquired a majority stake in designer label Sabyasachi in January this year and then in February another 33 per cent stake in designer label Tarun Tahiliani.
According to market estimates, the market value for ethnic-men and women is around Rs 1.5 lakh crore. Experts say that about 88 percent of the ethnic wear market in India is unorganized. Therefore, the value of the organized market is Rs 17,000-18,000 crore. In the organized segment, around 40 per cent of the market is held by brands in the value segment, 30 per cent by premium brands and 30 per cent by luxury brands.
The label Ritu Kumar, which was launched in 2002, is aimed at a young, global consumer of Western Phantom. Third RI Ritu Kumar is a luxury bridal couture and occasion wear line, while the newest addition to the brand portfolio, is an accessible product line that blends Ritu Kumar’s aesthetics in easy dressing that aims to reach a larger consumer base. Ritu Kumar Home & Living is a category extension under Ritu Kumar for home furnishings and furnishings.
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