Experts say that there is a lot of potential in the salon segment and Reliance is entering this segment at the right time. Mukesh Ambani-led Reliance Retail Salon is all set to enter the business. According to a report in Economic Times, Reliance Retail is in talks to buy around 49 per cent stake in Naturals Salon & Spa. The Chennai-based Naturals Salon & Spa Company is in direct competition with Hindustan Unilever Group’s Lakme and other regional brands such as Enrich and Geetanjali. A senior company official has informed ET. Here, the company official said that the deal to enter a joint venture by acquiring 49 percent stake in Reliance Retail, Groom India Salon & Spa, which runs natural salons and spa is in its final stages. A company official told the Economic Times,
“They have around 700 outlets across India and Reliance wants to increase it four-five times.
In this news of the Economic Times, CK Kumaravel, CEO of Natural Salon and Spa, has been said that the talks are still in the initial stage. He said that the Kovid-19 epidemic affected all types of business and the salon business is probably the worst affected. About 65 lakh people are involved in the Rs 20,000 crore salon industry in India. It also includes big beauty parlors and small shops. Here a spokesperson of Reliance Retail has not given any information on this. The spokesperson said that it is our policy that we do not comment on media speculations and rumours.
Planned to open standalone store
Reliance Retail also plans to open standalone stores for beauty products. In the last quarter, it acquired a majority stake in Mayuri Kumkum. This company is the owner of Insight Cosmetics. Franchise India Chairman Gaurav Marya said that there is a lot of potential in the salon segment and Reliance is entering this segment at the right time. Most of the salons run on the franchise model and this space can see more such acquisitions by large organized companies apart from attracting financial investors.
