Reliance Retail plans to enter the salon business by acquiring a stake in Chennai-based Naturals Salon & Spa, the Economic Times reported on November 4, citing unidentified executives in the know of the matter.
The retail arm of the oil-to-telecom conglomerate Reliance Industries Ltd is in talks to acquire a 49 percent stake in Groom India Salons & Spa, the parent company of Naturals Salon & Spa.
Naturals Salon has around 700 outlets in India and Reliance wants to expand it to over 3,000 outlets, the anonyms official told ET. “However, the existing promoters could continue running its operations and Reliance’s funding will help network expansion,” the report said.
The Rs 20,000-crore salon industry was the worst-hit sector during the Covid-19 pandemic.
CK Kumaravel, the CEO of Naturals Salon & Spa, confirmed the development, saying that the negotiations are at a ‘nascent stage’.
A Reliance Retail spokesperson declined to comment on the probable acquisition. “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. "
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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