Reliance Retail, a unit of the conglomerate Reliance Industries, is set to enter the salon business and is in talks to buy a 49% stake in Naturals Salon & Spa, the salon chain’s CEO announced on social media on Friday.
The existing promoters of Naturals Salon’s parent company, Groom India Salons & Spa, could continue to run operations, and Reliance’s funds would help the company’s network of 700 salons in 20 states grow four- to five-fold, according to the Economic Times, citing executives aware of the development.
‘Reliance Retail is yet to acquire the 49% of Naturals’ stake,’ Naturals CEO CK Kumaravel said in a LinkedIn post, sharing the ET report.
However, neither Kumaravel nor the ET report mentioned a deal value. Naturals and Reliance did not respond to requests for comment.
Naturals, based in Chennai, plans to open 3,000 salons by 2025, according to its website.
Reliance’s acquisition of Naturals comes just weeks after the company opened its first in-house premium fashion and lifestyle store, and media reports indicate that Reliance is in advanced talks to acquire the India rights to LVMH-owned beauty chain Sephora.
Salons were among the worst-affected businesses during the COVID-19 pandemic. Kumaravel, the CEO of Naturals, even sought government assistance in May 2020 to keep the chain afloat.
However, the salon industry is rebounding as more people venture out to social events and offices.
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