Reliance Retail Ventures Limited (RRVL) has acquired 89 percent equity stake in Purple Panda Fashions Private Limited, which owns and operates intimate wear brand Clovia.
RRVL made an investment of Rs 950 crore in the company through a combination of secondary stake purchase and primary investment, according to an official statement.
Clovia, launched in 2013 by Pankaj Vermani, Neha Kant & Suman Choudhary, is a bridge-to-premium D2C brand for women's innerwear and loungewear.
With this acquisition, Reliance added another brand to its portfolio in the innerwear segment, having already acquired Zivame and Amante brands.
BDA Partners acted as exclusive financial advisor to Clovia, while Shardul Amarchand Mangaldas acted as legal counsel and Deloitte, Haskins & Sells LLP provided due diligence services for the transaction.
Speaking on the investment, Isha Ambani, Director, Reliance Retail Ventures Limited, said, “Reliance has always been at the forefront of enhancing choices and offering best value proposition to consumers. We are pleased to add style, quality and design-led intimate wear brand ‘Clovia’ to our portfolio. We look forward to working with the strong management team at Clovia to take the business to greater heights.”
Pankaj Vermani, Founder & CEO of Clovia, resonated with Ambani's thoughts and expressed that the brand's vision is to provide world-class quality design and fashion in the intimate wear category.
She said, "Through this partnership, we will benefit from Reliance's scale and retail expertise, extending the presence of the brand and bring together stronger value proposition through world-class quality, design and fashion in the intimate wear category. We look forward to making Clovia the most loved brand in this category".
This is Reliance Retail's second acquisition this month. Earlier on March 1, the company announced an investment in 30-year-old designer brand Abraham & Thakore (A&T) for a majority stake.
RRVL is a subsidiary of Reliance Industries Limited and holding company of all the retail companies under the RIL Group. RRVL reported a consolidated turnover of Rs 1,57,629 crore ($21.6 billion) and net profit of Rs 5,481 crore ($750 million) for the year ended March 31, 2021.
(Disclaimer: 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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