Reliance Industries, the parent of Reliance Retail, said it has acquired a 12.5% stake in a fashion company called Future101 Design Pvt Ltd at a cost of Rs 9.5 cr.
The Gurgaon-based company designs and manufactures garments such as ladies kurtis and men’s shirts.
“Future101, incorporated in July, 2013 is engaged in manufacturing, distribution and sale of luxury apparels, etc. in India,” Reliance Industries said.
“Future101 belongs to a similar industry as Reliance Brands Limited. We exp ect growth in this sector and value creation from this investment,” it added.
Readymade garment manufacturing is a fast-growing industry in India because of the fast expansion of organized retail chains, including Reliance’s own Trends, as well as others such as More from Aditya Birla Group and Big Bazaar from Future Retail.
RIL said the deal, routed through its ‘Reliance Brands’ subsidiary, is a ‘strategic investment’.
The company had revenue of 22.18 cr in the last financial year, up from 20.85 cr in the preceding one and Rs 17.11 cr in the year before.
Reliance is investing heavily into its e-commerce and retailing arms, and operates the portal ajio.com.