The report has quoted executives aware of the development who said Reliance Retail is in the final stage of a deal to enter a joint venture by acquiring 49 per cent stake in Groom India Salons & Spa, the company which runs Natural Salons & Spa.
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New Delhi: Mukesh Ambani-led Reliance Retail is set to enter the salon business and is in talks to buy about 49 per cent stake in Naturals Salon & Spa, according to a report on the Economic Times. Chennai-based Naturals Salon & Spa competes directly with the Hindustan Unilever’s Lakme and other regional brands such as Enrich and Geetanjali. The report has quoted executives aware of the development who said Reliance Retail is in the final stage of a deal to enter a joint venture by acquiring 49 per cent stake in Groom India Salons & Spa, the company which runs Natural Salons & Spa.
They have around 700 outlets across India and Reliance wants to grow it four-five times”, said the source to ET. The source added that, “However, the existing promoters could continue running its operations and Reliance’s funding will help network expansion.”
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“The talks are in the nascent stage”, the report also quoted CEO of Natural Salon & Spa, Mr CK Kumaravel, who went on to say the Covid-19 pandemic impacted every business, and salon business was probably the worst impacted one. Mr Kumaravel also said, “Covid is not the reason why we are diluting stake.”
In response to the queries based on the report, a Reliance Retail spokesperson said, “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges.”
We’ve seen a whopping growth in the Indian beauty and personal care industry in the recent past with more and more regional and global companies emerging to have a bite of the cherry. According to a report on the Indian Retailer, as per 2022 figures, the market is evidently growing unfettered at a stupendous $26.07 billion and it’s expected to boom annually by 4.64 per cent.
