New Delhi: Reliance Retail has obtained 52% equity in the oldest fashion house in India Ritu Kumar Day after picking up important shares in Manish Malhotra, a Couture Desi label which has become the principal of Bollywood celebrities.
Ownership ‘Ritika’, parents of various designer brands aged 76 years in all categories, will provide control of dependence on Kumar’s ritu label, riti Kumar, Aarké and Ritu Kumar Home & Living.
While the measure of the agreement was not disclosed, the acquisition of equity included the dependence of buying 35% of the shares in the company.
The private equity company has invested $ 16.6 million in the company in 2014.
It is often credited by introducing the concept of designer clothing to India, Kumar, who started its fashion business in the late 60s, known for its work with natural fabrics and traditional weaving techniques.
Moving Reliance to Lap Up HomeGrown Etnic Designer Wear Labels comes against rival background Aditya Birla Fashion and Retail (ABFL) buying pegs in ethnic clothing brands like Tarun Tahiliani, Sabyasachi and Jaypore.
The two companies aim to take advantage of this brand name by developing and launching collections in affordable segments.
For designers, fresh capital means a new levy lease because the pandemic has destroyed income for retail players.
“Most Indian designers run boutique shops and they lack scale,” said a former senior employee at one of the largest couture labels in India.
“Clothing is sold mostly during a wedding and party season.
With both calm for the past two years, you cannot stay long.”