Arvind Fashions sells Sephora India business to Reliance

Arvind Fashions Limited (AFL), a prominent player in India's casual and denim market, has finalized agreements with Reliance Beauty & Personal Care Limited (RBPCL) to sell its wholly-owned subsidiary, Arvind Beauty Brand Retail Limited (ABBRL), responsible for operating Sephora India. This transaction, an all-cash deal, involves RBPCL, a subsidiary of Reliance Retail Ventures Limited.

With this move, AFL aims to focus on growing its portfolio of five marquee industry-leading brands, including U.S. Polo Assn., Tommy Hilfiger, Arrow, Flying Machine, and Calvin Klein, while also using the proceeds for brand development and debt repayment. Sephora India, which currently operates 26 stores across the country, specializes in offering premium beauty products spanning makeup, skincare, fragrance, and haircare.

Shailesh Chaturvedi, CEO of Arvind Fashions, expressed pride in the substantial growth of Sephora India during their partnership, and noted that this transaction will channel capital into expanding their high-conviction brands, driving towards increased free cash flow and return on capital employed. Alia Gogi, Asia President of SEPHORA, expressed gratitude to Arvind for their collaboration over the past eight years, positioning them for the next phase of growth. The transaction was advised by Metta Capital as the exclusive financial advisor and Anagram Partners as the legal advisor to AFL.