Myntra to buy major stake in Hrithik Roshan’s HRX brand

Online fashion retailer Myntra is going to buy a majority stake in HRX, a clothing and shoes brand. This was launched by actor Hrithik Roshan from Exceed Entertainment. The transaction will be completed over the next few weeks.

HRX is expected to bring in sales of Rs 300 crore this financial year, up from Rs 100 crore last year. HRX was launched in 2013 and it is a sports and lifestyle brand sold on Myntra and Flipkart. It sells clothing, shoes, belts, backpacks and wallets. Once Myntra acquires HRX, it will become a part of the e-tailer’s growing portfolio of private brands. The company, which is owned by Flipkart, now owns 12 private brands including HRX.

For Myntra, the deal will add an attractive sportswear and lifestyle brand in its private brand collection. As Rajesh Narkar, vice-president, Myntra Fashion Brands believes that buying an equity stake in HRX will align their vision with HRX’s over the long term.

Myntra has been successful in building a large private brands business ahead of its parent Flipkart and rival Jabong. Myntra expects private brands to contribute up to 30 per cent of its sales by March 2017 from about 20 per cent at the beginning of the financial year. The company is targeting gross sales of Rs 5,000 crore this year. For HRX, too , it’s a win-win situation. It will get access to analytics, data on consumer preferences and more marketing power. HRX plans to expand to offline stores in India this year as well as to countries in West Asia. The plan is to make HRX a massive brand in the next 3-5 years.