Innerwear brand Clovia sells 89 per cent stake to Reliance Retail for Rs 950 cr

Reliance Retail Ventures Ltd on Sunday said it has acquired 89 per cent equity stake in Purple Panda Fashions Pvt Ltd, which owns and operates innerwear brand Clovia, for Rs 950 crore.

The acquisition cost of Rs 950 crore includes secondary stake purchase and primary investment. The founding team and management team will own the balance stake in the company, the retail subsidiary of Reliance Industries Ltd (RIL) said.

"Launched in 2013 by Pankaj Vermani, Neha Kant and Suman Choudhary, Clovia is India's leading bridge-to-premium D2C brand democratising aspirational innerwear and loungewear for millennial women," Reliance Retail said in a release.

The company commands a strong customer following in the intimate wear space and is known for its design led fresh styles and sharply-priced offerings to customers, it added.

Clovia's offerings include 3,500+ product styles. It also has a strong inhouse design process to offer trending designs and innovative styles, while it follows an asset-light outsourced production model.

Clovia designs, manufactures and sells innerwear, activewear, and personal care products through own D2C digital platforms, marketplace platforms, exclusive brand outlets, and multi-brand retail outlets.

The acquisition, Reliance Retail said, will further strengthen its portfolio in the innerwear segment, having already acquired Zivame and Amante brands.

Commenting on the acquisition, Reliance Retail Director Isha Ambani said, "We are pleased to add style, quality and design-led intimate wear brand 'Clovia' to our portfolio. We look forward to working with the strong management team at Clovia to take the business to greater heights."

"Clovia is excited to become a part of the Reliance Retail family. Through this partnership, we will benefit from Reliance's scale and retail expertise, extending the presence of the brand and bring together stronger value proposition through world class quality, design and fashion in the intimate wear category," Clovia CEO Vermani said.