The 76-year-old designer will stake in ‘Ritika’, parent of multiple brands across categories Reliance control over Label Ritu Kumar, RI Ritu Kumar, RK and Ritu Kumar Home and Living. Although the size of the deal was not disclosed, the equity acquisition includes the purchase of Reliance EverstoneHolds 35 percent stake in the company. The private equity firm invested $16.6 million in the company in 2014.
Often credited with introducing the concept of designer wear to India, Kumar, who started his fashion business in the late 60s, is known for his work with natural fabrics and traditional weaving techniques.
Reliance’s move to adopt domestic ethnic designer wear labels comes against the backdrop of rival Aditya Birla Fashion & Retail (ABFRL) buying stake in ethnic wear brands such as Tarun Tahiliani, Sabyasachi and Jeypore.
Both the companies are aiming to capitalize on these brand names by developing and launching collections in the affordable segment. For designers, new capital means a new lease of life as the pandemic wiped out the revenues of retail players.
“Most Indian designers run boutique stores and they lack scale,” said a former senior employee at one of India’s largest clothing labels. “Clothes are mostly sold during weddings and party seasons. With both of them being under control for the last two years, you may not be able to survive for long. ”
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