India retail giant Reliance Retail is reported in talks to acquire Italian cosmetics brand Kiko Milano India business, aiming to enhance its presence in the rapidly expanding beauty market of the country.
Reliance Retail, established in 2006, stands as India’s foremost retail enterprise and operates under the umbrella of Reliance Industries. With revenue reaching $33 billion in 2023, it is the largest retailer in India in terms of revenue. Its expansive network encompasses a wide array of products, including food, groceries, apparel, footwear, toys, home improvement items, electronics, and agricultural supplies. By 2023, it boasts a workforce of over 245,000 employees spread across 18,000 store outlets situated in 7,000 towns.
Should the agreement materialize, Reliance Retail would assume control of approximately 12 Kiko Milano beauty outlets in India. Presently, Kiko Milano operates in the country through a collaboration between the Italy-based Percassi Group and DLF Brands Limited, headquartered in New Delhi.
Reliance Retail’s potential acquisition of Kiko Milano would mark its second purchase of a global beauty and cosmetics brand. Previously, the retail giant acquired the India business of Sephora, owned by LVMH, from Arvind Fashions in November 2023. The deal, valued at an enterprise value of Rs 216 crore, included Sephora’s network of 26 stores spread across 13 cities.
Kiko Milano was founded in Italy by the Percassi family in 1997 and quickly rose to become the top-selling cosmetics brand in Italy due to its high value proposition. By 2023, Kiko Milano had expanded its presence globally to over 1,000 sales outlets. In 2023, Kiko Milano’s EBITDA stood at approximately 130 million euros. L Catterton’s valuation of KIKO is based on a multiple of 13 to 15 times this figure.
