Reliance Retail Ventures (RRVL) on Friday said it is taking over the India operations of LVMH-owned Sephora from Arvind Beauty Brands Retail, a subsidiary of Arvind Fashions. According to an official release, the all-cash deal for INR 99 crore, values Arvind Beauty Brands Retail at INR 216 crore. The enterprise value includes the entire equity stake and outstanding loans.
The transaction, through RRVL arm Reliance Beauty & Personal Care, comes after talks between Sephora and Reliance Retail to form a retail partnership for the Indian market were abandoned earlier this year.
A separate release by Reliance Retail said that it has tied up with omnichannel beauty retailer Sephora to jointly develop beauty retailing in India. “The partnership gives RRVL exclusive rights to build and enhance Sephora’s presence in India across channels,” it said.
Sephora has been operating in India since 2012. Its association with the Arvind group goes back to September 2015, with the Indian company setting up 26 stores in 13 cities. Arvind had been looking to launch an exclusive online beauty store for Sephora and had applied for an online licence. Sephora products were available on Arvind group’s NNNOW website in the absence of an exclusive online store.
RRVL said it will expand Sephora’s operations across the country. Industry estimates peg the domestic beauty and personal care market at $17 billion which is growing at 11% per annum, as per the statement.
Shailesh Chaturvedi, CEO, Arvind Fashions, said the exit from Sephora operations would help the company focus on its apparel brands. “Arvind Fashions can now put capital behind growing the five high conviction brands — US Polo Association, Tommy Hilfiger, Arrow, Flying Machine and Calvin Klein — and accelerate the journey towards higher free cash flow and return on capital employed,” he added.
