Reliance Brands targets acquisitions

Reliance Brands, a subsidiary of Reliance Retail, will focus on brand partnerships and creating brand portfolios to make its presence felt in the Indian branded apparel sector.

The company is exploring inorganic growth opportunities through buying equity stakes in existing brands or designer labels.

Recently, the Mukesh Ambani-controlled Reliance Retail formed a separate company to steer its branded apparel operations.

Darshan Mehta, chairman and managing director, Reliance Brands said, "The company's primary objective is to be a preferred partner for international brands. We are also considering inorganic growth by picking up minority or majority stakes in Indian brands."

Stating that Reliance Brands intends to monetise Indian designs, Mehta said, "The Indian apparel space has certain entrepreneur-driven brands and designer labels with great concepts. They have the potential of having a pan-India presence, if marketed and managed on a wider scale."

Earlier this year, French luxury goods giant Louis Vuitton Moet Hennessy had announced plans to make private equity investments of approximately Rs 2,230- 2,790 crore in Indian retail chains and brands, jewellers, ayurveda, designers and spas.

Reportedly, the company is in talks with Indian fashion designers for possible equity partnerships in the designerwear industry.

Reliance Brands has identified premium denim, contemporary brands, women-oriented labels and women's lingerie as possible categories for launching international brands.

It has inked the first joint venture with the Italian fashion house Miss Sixty Group, which will hold the majority stake in the venture.

The company will retail brands such as Miss Sixty, Energie, Killah and Murphy & Nye in India.

Maurizio Perich, commercial director, foreign markets, Miss Sixty said, "The lack of knowhow of managing premium brands in India was restricting our entry. However, we are optimistic about the conducive retail environment as high-end and luxury malls are proposed to come up in the near future."

Perich said the company's strong retail concepts and communication strategy would enable it to penetrate the Indian market.

Mehta said the company was planning an aggressive roll out of its denim wear brands.

"The fashion portfolio will have a immediate impact, but we will be seeding the market for authentic wear similar to the Japanese market. India is also moving from fashion towards the authentic wear segment," he said.

Authentic wear refers to apparel connected with activities such as sailing, golfing, biking and others.

Reliance Brands will open two stores of authentic wear brand Murphy & Nye in Delhi and Mumbai. It also plans to roll out 40-50 exclusive stores for denim brands and take Miss Sixty to the top-10 cities in the next three years.

TEAMING UP

The company is exploring inorganic growth opportunities through equity stake in existing brands or designer labels

The company's primary objective is to be a preferred partner for international brands

Reliance Brands has identified premium denim, contemporary brands, women-oriented labels and women's lingerie as possible categories for launching international brands

It inked the first joint venture with Italian fashion house Miss Sixty Group, which holds the majority stake in the venture

The company will retail brands such as Miss Sixty, Energie, Killah and Murphy & Nye in India