Reliance’s retail subsidiary acquires control of Insight Cosmetics

NEW DELHI : Reliance Retail Ventures Ltd (RRVL) has acquired a majority stake in makeup and personal care brand Insight Cosmetics, two people familiar with the deal have said, marking the billionaire Mukesh Ambani-owned company’s entry into the the cosmetics sector.

The deal was valued at $10-15 million, one of the people said, requesting anonymity. The person declined to give details of the transaction.

Insight Cosmetics was started by Mumbai-based entrepreneur Dinesh Jain in 2001. The brand claims to have a distribution presence in 20 states and its products are sold in over 12,000 retail and novelty stores across the country.

The company has more than 350 stock units and mainly sells nail polish, lipstick, mascara, eyeliner, eyeshadow, foundation, concealer, lip gloss and brushes. make-up, among the products. It also sells its products on more than 10 e-commerce portals.

Email queries to Insight Cosmetics and RRVL on Saturday morning went unanswered until press time.

The deal is in line with the strategy of RRVL, the retail business of Reliance Industries Ltd, to grow its beauty and personal care business primarily through acquisitions and to compete with incumbents such as Nykaa, Myntra and Purplle in India’s growing omnichannel market for beauty products. RRVL has focused on brands in the apparel, footwear, beauty and personal care categories within the fashion and lifestyle segment, according to industry analysts. These brands will mostly be in the mass premium category.

RRVL is also preparing to open 400 to 450 large-format stores to resell the acquired brands. A few homemade labels may also be available at these stores, said another person following RRVL’s inorganic strategy.

In May, RRVL was reportedly at an advanced stage of talks to buy a majority stake in a Mumbai-based women’s shoe brand. In March, RRVL purchased an 89% stake in Purple Panda Fashions Pvt. Ltd, which owns and operates women-focused loungewear and loungewear brand Clovia. This was part of Reliance’s strategy to establish a stronger foothold in the organized fashion market and follows its investments in a series of local brands such as Abraham & Thakore and Anamika Khanna.

In the past, the company also acquired the Zivame and Amante brands to bolster its loungewear portfolio.

India has seen an increase in direct-to-consumer (D2C) brands and is estimated to have an addressable market of $100 billion by 2025, according to an October 2021 note from Avendus.

Fundraising activity in the broader beauty and personal care segment has surged in recent months.

For example, last month Spanish fashion and fragrance maker Puig SL purchased an additional 20% stake in Kama Ayurveda from Lighthouse Advisors India Pvt. In June, skincare and wellness brand Wow Skin Science raised a funding round with Singapore’s sovereign wealth fund GIC. In May, Sugar Cosmetics, operated by Vellvette Lifestyle Pvt. Ltd, secured $50 million in Series D funding led by US private equity fund L Catterton. In March, personal care brand Plum raised $35 million ( 270 crore) in its Series C funding led by growth-stage investor A91 Partners.

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