Reliance To Enter Salon Business, To Buy 49% Stake In Naturals: Report

Reliance Retail is set to enter the salon business by acquiring a 49 per cent stake in Chennai-based Naturals Salon & Spa.

Reliance Retail is set to form a joint venture by acquiring a nearly 49% share in Groom India Salons & Spa, the business that owns Naturals Salon & Spa, Economic Times reported, citing executives aware of the development, 

After the acquisition Reliance Retail will compete directly with brands like Lakme.

According to a LinkedIn post by CK Kumaravel, Naturals CEO, “Reliance Retail is yet to acquire the 49% of Naturals' stake”.

"They have around 700 outlets across India and Reliance wants to grow it four-five times. However, the existing promoters could continue running its operations and Reliance's funding will help network expansion," the report quoted one of its executives as saying.

Established in the early 2000s, Naturals Salon & Spa aims to operate 3,000 salons by 2025.

"The talks are at a nascent stage. Covid impacted every business and salon was probably the worst impacted. But in the last seven months, business has been robust and Covid is not the reason why we are diluting stake," CK Kumaravel, CEO, Naturals Salon & Spa said.

The acquisition of Naturals by Reliance comes just after the company opened its first premium in-house fashion and lifestyle store.