Reliance Brands buys out L Catterton’s stake from Genesis Luxury

Mukesh Ambani-led Reliance Brands has bought out L Catterton Asia’s around 40 per cent stake in Genesis Luxury, its direct competitor in luxury retail. Reliance Brands already retails brands like Ermenegildo Zegna and Bally among others. The unprecedented move, perceived to be inimical to Genesis' founder promoters Sanjay Kapoor, Jyoti Narula and Puneet Nanda, designer Satya Paul's sons, is poised to change the dynamics of luxe business.

The buzz is the stake sale was for Rs 250-Rs 300 crores. Genesis Luxury is a group company of Sequoia Capital-backed Genesis Colors, and retails a range of brands like: Burberry, Canali, Paul Smith, Armani, Just Cavalli, and Jimmy Choo.

Earlier this year, Kapoor had lisedt his privately held parent entity Genesis Colors and raise Rs 500-650 crores of primary and secondary capital to infuse growth equity for expansion and help existing investors cash out. While Sequoia, Henderson PE and Mayfield cumulatively hold 41.5 per cent, the founders own the rest. L Capital held 40 per cent in the drop down subsidiary Genesis Luxury.

Experts say in the long run this consolidation will help add heft. Genesis had already gone through a round of restructuring and reshuffled key management positions with an eye to bringing under its roof more businesses and brands prior to listing. Sources say Reliance Brands had also inked a deal with Italian luxury maker Valentino to bring the brand to India. The other brands in Reliance Brands’ burgeoning portfolio include Amsterdam based fashion brand Scotch & Soda and Kate Spade New York. Ravi Thakran, Managing Partner, L Catterton Asia says the company has demonstrated strong revenue growth and continuous margin improvement since their investment.