Reliance has now acquired mid-segment retail brand John Players to improve its overall retail offerings. With this acquisition, they have also increased their Retail value by 350 Crore. A spokesperson from Reliance said “The acquisition will strengthen Reliance Retail’s readymade garments and accessories portfolio in the fashion and lifestyle retail space, and further consolidate leadership position as India’s largest, most profitable and fastest-growing retailer,”
This acquisition deal was signed last week. According to the deal, Reliance will now own John Players along with holding all the distribution rights across 750 stores and 65 franchise outlets that are exclusive to the brand.
The Reliance spokesperson also said, “A substantial portion of John Players business, around 65%, was already undertaken through Reliance Retail, through Reliance Trends stores and Ajio.com.”
Meanwhile, ITC to focus on premium offerings
ITC has recently been on a re-branding spree wherein it only wants to focus on its more premium offerings. This is why they recently repackaged ITC Will’s Lifestyle to WLS. Though ITC has not disclosed any financials for its retail business, and also declined to comment on the matter, people close to the deal said that most of its retail businesses are suffering major losses. On the other hand, WLS makes profits and brings in revenues worth 500-600 Crore INR to ITC, which is why they are shifting their focus to this.
Reliance Retail offerings have been a success
Reliance sees 7-8% of its annual revenue through its retail chains. 10 of Reliance’s private brands bring the company an annual turnover of 100 Crore INR. 4 of Reliance’s private brands bring in an annual business of 500 Crore INR. These owned brands contribute towards over 70% of the business that is generated by Reliance Retail.
John Players, the latest brand acquisition, should add more value to Reliance.
image source: John Players