Billionaire Mukesh Ambani-led Reliance Industries has raised its stake in luxury apparel firms Future101 Design and Genesis Colors to strengthen its foothold in retail industry.
Reliance Brands Ltd (RBL), a unit of RIL, “has acquired a further stake of 2.5 percent in Future101 Design Pvt Ltd on February 7, 2019, for a consideration of Rs 1.99 crore, taking its total stake in Future101 to 15 percent,” the company said in a regulatory filing.
According to a PTI report: Also, Reliance Retail Ventures Ltd (RRVL), a separate subsidiary of the company, acquired a further stake of 9.44 percent in Genesis Colors Ltd (GCL), for Rs 45 crore taking its total stake in GCL to 29.07 percent on the enhanced capital.
“Consequently, the stake of RBL in GCL shall be 43.66 percent and the aggregate equity shareholding of RRVL and RBL in GCL stands at 72.73 percent,” it said.
Reliance said the acquisitions will help it to strengthen its foothold in the retail industry and support its long-term strategy to enhance its value in the industry.
No regulatory approvals were required for the acquisition of shares and the investment does not fall within related party transaction, it added.
The company had in July last year bought 12.5 percent stake in Future101, which is engaged in manufacturing, distribution, and sale of luxury apparels in India, for Rs 9.50 crore.
Future101 reported an annual turnover of Rs 22.18 crore in 2017-18.
In September 2018, RRVL had acquired a 16.31 percent stake in GCL, which owns fashion label Satya Paul, for Rs 34.80 crore. RRVL, through unit RBL, already held a 49.46 percent stake in GCL.
That month, RRVL invested a total of Rs 57.03 crore in five other companies that sell branded readymade garments, bags, footwear, cosmetics and accessories.
It bought a 2.07 percent stake in Genesis Luxury Fashion Pvt Ltd for Rs 3.37 crore, taking its holding in the company to 49.37 percent. Genesis Luxury Fashion distributes premium brands such as Jimmy Choo, Armani, Paul Smith and Bottega Veneta.
It also bought 50 percent stake each in GLF Lifestyle Brands Pvt Ltd and Genesis La Mode Pvt Ltd for Rs 38.45 crore and Rs 10.57 crore, respectively.
Besides, it acquired 50 percent each of GML India Fashion Pvt Ltd and GLB Body Care Pvt Ltd for Rs 4.48 crore and Rs 16 lakh, respectively.