Reliance Brands acquires 8% additional stake for Rs 34 crore in Genesis Colors
Reliance Brands had earlier acquired a 40 percent stake from L Catterton in September 2017 and the acquisition of the additional stake is part of Reliance’s bigger plan of fully acquiring the group company Genesis Luxury.
"Reliance Brands, a subsidiary of the Company, has purchased an additional 8.14 per cent equity stake in luxury fashion retail firm Genesis Colors Limited for about Rs 34.17 crore, taking its total stake in GCL to 9.29 per cent," RIL said in a filing.
"GCL belongs to a similar industry as Reliance Brands Limited. This acquisition will add to the existing portfolio of branded fashion retail outlets," the filing said.
The acquisition of a significant stake in Genesis is expected to give Reliance complete dominance in India’s luxury goods market estimated to be around $19 billion.
GCL was incorporated in November 1998 and is in retailing and wholesale business of branded readymade garments, bags, footwear and accessories directly and through its subsidiary/joint ventures. GCL had provisional annual turnover of Rs 86 crore in fiscal year 2017-18.
Genesis Luxury currently holds the India licenses to retail leading luxury brands like Burberry, Canali, Paul Smith, Armani, Just Cavalli, and Jimmy Choo amongst others.
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