New Delhi: In a major acquisition, Reliance Retail Ventures Ltd has bought a majority stake in women’s intimate wear brand Clovia for an amount of Rs 950 crore, the company said in a media statement late on Sunday.


Reliance Retail has bought 89 per cent stake in Purple Panda Fashions Pvt, which owns and operates Clovia, for Rs 950 crore, the company noted, according to the Bloomberg report. The balance stake in the firm will be owned by the founding team and management.


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How the deal strengthens Reliance portfolio?


In its attempt to tap everything from apparel to pharmacy and furniture, the Mukesh Ambani-owned conglomerate’s unit has acquired the women’s intimate wear brand.


The deal includes a combination of secondary stake purchase and primary investment.


Started eight years ago, Clovia has expanded operations with 3,500 products across innerwear and loungewear categories for millennial women. The company retails products through its own direct-to-customer digital platforms, marketplace platforms, exclusive brand outlets, and multi-brand retail outlets.


This will strengthen Reliance Retail’s portfolio in the innerwear segment as it has already acquired Zivame and Amante brands, the company noted.


On the other hand, Pankaj Vermani, chief executive officer at Clovia, 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.”


Reliance Retail is listed among the fastest growing retailers in the world by Deloitte’s Global Powers of Retailing 2021 index. It is ranked 53rd in the list of top global retailers and is the only Indian retailer to feature in the top 100.


BDA Partners remained an exclusive financial adviser to Clovia, while Shardul Amarchand Mangaldas acted as legal counsel.


Deloitte, Haskins & Sells LLP provided due diligence services for the transaction.