Reliance Retail Ventures Ltd. has acquired a majority stake in women’s intimate wear brand Clovia as the Mukesh Ambani-owned conglomerate’s unit aims to become a one-stop shop for everything from apparel to pharmacy and furniture.
Reliance Retail has bought an 89% stake in Purple Panda Fashions Pvt., Which owns and operates Clovia, for Rs 950 crore, the company said in a media statement late on Sunday. The deal includes a combination of secondary stake purchase and primary investment. The balance stake in the firm, it said, will be owned by the founding team and management.
Eight-year-old Clovia sells more than 3,500 products across innerwear and loungewear categories for millennial women through its own direct-to-customer digital platforms, marketplace platforms, exclusive brand outlets, and multi-brand retail outlets.
“With this acquisition, Reliance Retail will further strengthen its portfolio in the innerwear segment, having already acquired Zivame and Amante brands,” the statement said. Clovia has a “strong in-house design process” to offer trending designs and innovative styles, while it follows an “asset-light outsourced production model”.
Pankaj Vermani, chief executive officer at Clovia, said, “Through this partnership, we will benefit from Reliance’s scale and retail expertise, extending the presence of the brand and bringing together stronger value proposition through world-class quality, design and fashion in the intimate wear category. ”
BDA Partners acted as an exclusive financial adviser to Clovia, while Shardul Amarchand Mangaldas acted as legal counsel. Deloitte, Haskins & Sells LLP provided due diligence services for the transaction.
Reliance Retail has been listed among the fastest growing retailers in the world in Deloitte’s Global Powers of Retailing 2021 index. It, according to the company, is ranked 53rd in the list of top global retailers and is the only Indian retailer to feature in the top 100.