Reliance Brands buys additional 8 per cent stake in Genesis Colors

Reliance Brands, owned by Reliance Industries, has bought an additional 8 per cent stake in luxury fashion firm Genesis Colors (GCL) for Rs 34 crore (5 million US dollars). Reliance Brands had earlier acquired a 40 per cent stake from L Catterton in September 2017 and the acquisition of the additional stake is part of Reliance’s bigger plan of fully acquiring the group company Genesis Luxury.

As per the filling, Reliance Brands, has purchased an additional 8.14 per cent equity stake in luxury fashion retail firm Genesis Colors for about Rs 34.17 crore, taking its total stake in GCL to 9.29 per cent. GCL belongs to a similar industry as Reliance Brands. This acquisition will add to the existing portfolio of branded fashion retail outlets.

The stake acquisition in Genesis is expected to give Reliance complete dominance in India’s luxury goods market estimated to be around 19 billion US dollars. GCL was incorporated in November 1998 and retails and wholesale business of branded readymade garments, bags, footwear and accessories directly and through its subsidiary/joint ventures. GCL had provisional annual turnover of Rs 86 crore in fiscal 2017-18.

Genesis Luxury currently holds the India licenses for leading luxury brands like Burberry, Canali, Paul Smith, Armani, Just Cavalli, and Jimmy Choo amongst others.