India’s leading retailer, Reliance Retail Ventures Limited (RRVL), has forged a strategic partnership with Sephora, the global beauty industry behemoth, to oversee the management of Sephora’s retail outlets in India. This collaboration marks a significant move for RRVL, which, in April, launched its beauty retail platform Tira to compete with industry leaders like Nykaa and the Tata Group. RRVL is set to take over Sephora’s 26 stores in India, previously operated by Arvind Fashions.
The transaction has been finalised at an enterprise value of ₹216 crore, covering the sale of the entire equity stake and loan repayment. The purchase consideration for the sale of the entire equity stake amounts to ₹99.02 crore.
With this development, Sephora has terminated its eight-year partnership with Arvind Fashions Ltd and has transitioned to Reliance Beauty & Personal Care Ltd, a wholly-owned subsidiary of RRVL. Under this new partnership, RRVL gains exclusive rights to enhance Sephora’s presence in India through various channels and extend its beauty portfolio under the Tira retail brand. Reliance, as India’s largest retailer, aims to capitalise on this collaboration while continuing to strengthen its position in the beauty retail sector.
Sephora’s product range encompasses a wide array of beauty and skincare products, including luxury brands like Dior and Tom Ford, available both offline and online. The brand has recently become the exclusive retailer for pop star Selena Gomez’s Rare Beauty brand in India.
Sephora’s Asia President, Alia Gogi, noted that factors like rising affluence, urbanisation, and the impact of social media have driven a growing awareness of self-care and beauty, opening significant opportunities for prestige beauty brands.
The news of this collaboration had a positive impact on the stock market, with Arvind Fashions’ shares surging by 11.5% before closing 5.8% higher. Sephora’s beauty division reported a revenue of ₹3.37 billion in fiscal year 2023, accounting for approximately 7.6% of Arvind Fashions’ total revenue. The proceeds from this deal will be utilised to invest in Arvind Fashions’ brands and repay debt, further strengthening their position in the market.
The competition among beauty retailers in India is fierce, with an increasing focus on clean beauty products and celebrity-owned brands. Brands like Nykaa, Tira, and Shoppers Stop have expanded their product offerings to attract and retain customers.
