Reliance set for global play in luxury space
Mukesh Ambani led Reliance Industries is readying a global push in the fashion and lifestyle brands space. The new group arm, Reliance Brands Pvt Ltd, could be in the reckoning for acquisitions, joint ventures and strategic alliances with international brands straddling the premium-to-luxury end of the market, sources said.
Former Arvind Mills honcho Darshan Mehta will be spreading the venture as managing director, and will also hold a small equity stake in the entity. The new company will be distinct from the group�s retail venture, Reliance Retail, and could have operations with even other department stores and standalone shops. Given its high-profile character, the company will be under scanner of senior Ambani and top ranking group official Manoj Modi, sources added. When contacted, RIL declined to comment.
�This is recognition of the fact that brands and retail are two distinct businesses, and require different skill sets and management bandwidth as the group forges ahead with a consumer oriented growth,� people familiar with the situation told ET. The move comes at a time when many global fashion and lifestyle brands are sold on the India story and looking at a domestic foray. Eventhough Reliance Brands is expected to come up with a five year business roadmap in the next 90 days, it is believed to have already started taking cold calls from global firms.
Top end brands like Abercrombie & Fitch, Ralph Lauren, Coach and Gap are all lining up for a near-term India foray. And, interestingly, Mr Mehta in his previous stint at the helm of Arvind Mills has had interactions with most of the international brands interested in India. In his earlier assignment, he sewed up deals with Diesel, Tommy Hilfiger and VF Corp for Arvind. Reliance move could be a game changing one for the lifestyle sector in India, which has attracted other corporate bigwigs like Tatas, AV Birla and DLF.
What might prove more interesting would be the new company�s likely inorganic growth strategies, including global acquisition hunt, given the group�s investment appetite behind the venture, sources said. It may be mentioned that the international fashion space has been witnessing a churn with consolidation gripping several fashion houses. The recent weeks saw Liz Clairborne selling four of its brands to Asian sourcing giant Li & Fung, after Puma attracted a bid from PPR and Tommy Hilfiger was sold to Apax Partners.
